three banks jockeying to finance deflector., page-23

I think its worth considering the likely position/plan/timing for financing.

MYG has done a pretty good job to take the company and its asset to this point. Mining and exploration are different businesses. A mining team is being formed and the company will materially change going to production.

It seems the bank has been asked to do the majority of the finance. The cash flows will support a max debt figure IN THE BANK"S CONSERVATIVE OPINION and the rest will have to come from equity.

$75M debt capacity has been indicated in the press. Time will tell. Its worth remembering $11M has already been borrowed/hedged and largely spent getting this far (a timely deal which made good $$ I thought). An equity injection of say $25-$30M into MYG may well be required by the bank to underpin the debt package. Expect a fair chunk of additional bank-required hedging as well.

In any case, the shortfall of avail debt to build cost will be significant to MYG given its low capitalisation in this market. Sub-debt and off take arrangements are rarely available and never cheap. Hats off if they secure them on favourable terms.

Moreover the equity requirement will have to be raised and expended on the build before the bank allows loan drawdown. Months of detailed design/optimisation/approvals and planning need to be completed before the build starts which will likely be done concurrent with sorting the finance.

The current equity market is not helping despite the sound gold price.

Again, well done to MYG so far but lets not forget the difficult part has just commenced.