By traditional financing do you meen a private placement of equity or bank financing ?
Few banks lend to mining companies without either a feasibility report, or ongoing operations that provide collateral for their exposure.These days all over the country banks have pulled back their lending due to regulatory pressure, and the mill apparently is encumbered by a first and a second. The company forecasting processing by October by custom milling and if I understand ( based on their prior powerpoint) a year later production from mining. I guess I am having a bit of difficulty understanding what a bank would be lending against ?
Since their is a DTC chill on the stock, and price under $.10,one would assume a private placement would be challenging.
Having said that if company is correct mill will be fully permitted by June 30, and custom milling by Seeptember/October,and $9 million in orders (see below), certainly with positive cash flow and an operating mill company should do very well.
Just trying to understand. What does $9 million orders mean ? Measured in orders to process ounces of Gold ( say 5400 to 5600 ounces ?), what are terms ? In terms of construction requirements to meet permit requirements, etc, what does this entail as far as capital ?
Dont get me wrong- if company truly doesnt need any more permits, can meet its ket financial requirements,and can be providing positive cash flow by fall, it wil do very very well. Even if they have to get some more converts to reach that level.
Just my personal opinion, but to achieve their plan in 2013/2014 they will be at least 150 million shares outstanding if not 200 million by the end of the year at these price levels.
AI
