1st stop- level 40- going up!, page-479

The PFS will bring with it a development cost post a DFS (my guess $40 to 60 million). The company needs to pay for that DFS and has flagged using some of the raised funds to pay down debt. Say the DFS costs $10 million (very optimistic view) and they pay down $20 million of debt, that leaves about $20 million from the capital raising, maybe half what they need to fund the UG mine plans (optimistic view). Even if the existing mine starts netting out cash flow the turnaround story won't be immediate as that cash flow will be consumed by mine development. The market however has a bizarre way of factoring in success with a lot of these gold companies before it actually happens so all should be good. Esh