I do not think they have a chance at all in raising $10 million for following reasons :
1.Banks
(a) Not typical bank would lend to a mining company with no reserves, terrible balance sheet,and no colateral or cash flow to support a loan. They could not make a projection without a permit nor a source of mill feed.I dout anyone could find one example of a company in this status that in the last 5 years has raised any conventional bank loans.
(b.) The specialised banks lending to mining companies require reserves backed by a feasibility study, This company is probably years away from being able to establish reserves,if ever. Part of definition of reseves is that they can be legally and economically extracted- this includes permitting, legal ight to extract ore, meeting all permits , besides establishing the reserves through geology and engineering.
2. Equity
The junior mining sector is suffering a severe drop in capital availability. Over 700 companies in facing delisting this year ( and Canada raises over 65% of financing for junior mining companies worldwide).With a DTC chill and price under $.10 I do not know of any broker doing private placements in a stock like this that has a DTC chill. Plus to top things off who would buy equity without a huge discount due to outstanding convertibles.
Dont you think if CFO wishes to pay himself $300,000 he would found them if they exist ?
3.Quasi Equity- Convertibles
This appears to be the only game in town, and at some point if volume doesnt support may dry up as well. These guys though dont seem like they are likely to put in $11 million on the chance the company might establish reserves within several years. These sort of investors usually have 6 month time horizons.
4. Other investors based on business plan : I have a hard time believing someone with $11 million would buy stock in this company considering two reverse splits, track record of not meeting objectives, and very uncertain timing of when cash flow might resut.
Junior mining companies without reserves are traditionally financed from private placements of equity until they can establish reserves. This company even in the best of times would have problem raising capital with the outstanding convertibles. Plus anyone who has arranged financings for mining equities would look at this year's press releases about metal in the ground and probably run for the hills.The CFO's method of disclosure and press releases has done more permanent damage that the CFO seems aware of.thisis an early early stage exploraton company at best, masquerading as a short term production play.
I would be interested in 1mandband's take on this subject. I just do not believe there is any probability of this company raising $11 million in the next 12 months. Maybe CFO to pay himself has found some convertible debt buyer that will continue funding, but when price and volume evaporate and they sense more risk they will stop funding company at some point.