AVB 0.00% 16.5¢ avanco resources limited

Some update from the company on finance is better than no update...

  1. 833 Posts.
    Some update from the company on finance is better than no update at all. Do or be damned.

    It probably means that while BV portion is secured, the remaining 28m is still pending and within reach. Too hard to say if every single syndicate participants will join in but "within reach" probably implies they already have commitment of over 50% of the 28m.

    In the event that they wont get the full 28m, they will need to pull funds from existing cash which is not a big issue. The worst thing is when you are short and need to raise on market. Pulling from existing funds would mean a smaller PB drill program however. The plus side would be any funds used from existing cash to build the mine would be interest free.

    Remember that 10m is in contingency so if they fall 10m short out of the 28m it wouldn't be too bad as this would only be used if costs ran higher than expected during construction/commissioning.

    As there are many variables to finance, management has taken the prudent action of waiting to see if they get the full 28m before committing to a costly drill program. It totally makes sense to me.
 
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Currently unlisted public company.

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