With the US$3 million payment (~A$4 million) and their cash standing at $16.2 million at end of March, that will leave the company about $9.2 million at the end of the June quarter to use to complete the DFS ( based on their expected June quarter outgoings from in their March Form5b) and make the additional US$7 million (A$9.5 million) payment for 100% of the project. By my calculation that leaves a deficit of $300k once the deal is completed and no money for the DFS. ie the insto money tipped in at 48cents in April last year is gone.
Not trying to be overly pessimistic here but if I held shares I'd be selling this rally and waiting for where the next CR will be pitched at, as we know in the lead up to CRs the share price becomes a chocolate wheel. Let the instos reset their expectations and take it from there IMO as the ones that got a scolding at 48cents will want their pound of flesh once the tin is rattled again.
There is a long road still between the Nyanaga project and a mine IMO so investors have time on their side to pick their entry. Esh
ORR Price at posting:
26.5¢ Sentiment: Hold Disclosure: Not Held
