gln trading halt, page-8

Buffy, yes did not see the after market ann't about the placement. I feel thay are lucky to have got that done at that price.

The first tranche will give them a $2.66m injection now and the second can be done at the earliest within one month (given the minimum notification period for an EGM).

However, will it save them? The operation appears to be bleeding cash and not surprisingly, the bank has clearly demanded a good chunk of their loan repaid ($2.5m) out of this raising. So, they raise $6.5m, give $2.5m to the bank leaving them $4m cash from this raising and having (if I read the Q financial correctly) $4m in remaining bank debt. I suspect the gold price impact on the value of the hedge book has prompted the bank to seek a lower gearing relative to the loan.

By no means out of the woods and until they demonstrate a sustainable operational improvement there has to be a question of how much the company can really risk towards exploration. They just seem to have gotten themselves on the hampster treadmill regarding debt and operational performance where it appears no matter how hard they run, they don't get anywhere.