Zambezi is being largely funded and kept moving forward by LinQ Capital.
If you don't know much about LinQ, visit their webpage at this link (http://www.linqresources.com/home/).
From their June Quarterly Report (http://www.linqresources.com/images/docs/23081165427.pdf), the following extract.
START "The Fund realised its holding in Riversdale (which was acquired by Rio Tinto) over the quarter at $16.50 per share, resulting in a realised investment return of 846% underlining the Manager’s ability to identify, hold and capitalise on investments. (the Fund has been an investor in Riversdale for over 5 years). The available funds from this transaction have been partially re-invested and earmarked for the continuation of the Fund’s enhanced investment strategy as recently demonstrated by the Fund’s lead participation in a $15 million funding arrangement for Zambezi Resources Limited (ZRL)." END
I encourage holders to read this report. Of note, their stated Top Investments as of the 30th June 2011 on the ASX included:
Newcrest - Market Cap 25B Atlas - Market Cap 2.5B Metminco - Market Cap 212M Zambezi - Market Cap 13.2M
These guys are not in the habit of losing money. They are sit and hold tight, backing the right companies at the right time to get magnificent returns like the 846% realised from Riversdale. If they hope to get anything like that from ZRL, well, say no more....
Excluding the current loan, they already hold 222M shares in ZRL. This could increase to well over a Billion shares when they choose to convert their loans from Tranche A and Tranche B.
Anyways, just some information. Please check these things out for yourself of course.
ZRL Price at posting:
1.1¢ Sentiment: LT Buy Disclosure: Held