There has to be a CR at some stage - and sooner than later. MXC is a bit cash strapped at the moment.
If they intend to use the Malta facility then they will need funds to ramp up production - and then hope they can flog off what they produce.
With the POMs clearly interested in MXC then they may as well strike while the iron is hot - in a few months time, that opportunity may not be there. They can't survive making a $4 -5mil loss every year. They need to expand sales significantly.
Getting some cash now - and they should aim for $10mil - and then a consolidation in 6 months time would be a prudent strategy - to be honest, they don't really have an alternative one available to them. They can't borrow any more - no one will give them funds.
The last time around, they had to rely on "death spiral financing" to get any funds - they sold their soul even though they probably had a shortfall in that area.
One way or the other, the next 12 months will be a tumultuous time for MXC. Maybe they are considering putting MXC on the open market in that time. I certainly have my doubts they will be around a year from now as an independent entity.
MXC Price at posting:
6.8¢ Sentiment: None Disclosure: Not Held
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