A 10% interest rate seems high given current climate, but higher interest is required to compensate for (perceived) risk.
I think debt is the right decision though as, although their is no income stream now, if things go well (a big if) at Mt Cattlin, then the debt should be serviceable (~$3 million/year interest). In fact a little surprised they were able to access debt, especially with Geely and Fengli walking away and DB selling.
I would say, given current cash, GXY have bought themselves about a year to get Mt Cattlin profitable and to make some decend progress on Sal de Vida (still years away from producing an income). Still a hard road to navigate, but much easier than this time last week.
