Ann: Las Lagunas Project Financing, page-7

From the announcement od the 16th Dec Proposed Financing Strategy, PGI has stated that the $5m loan repayment will be funded by a capital raising through a share issue or by a refinancing of the existing loan through an American bank.

But PGI must already have funds earmarked for the repayment of shareholder loans but is unable at the moment owing to the Macquarie loan agreement.

"Shareholders’ Loans totalling A$3.4 million which are due for repayment on 31 December 2014, will not be able to be paid on this date as the Company’s principal lender, Macquarie Bank Limited, will not permit Shareholders to accept repayment of their loans under the
terms of a formal Subordination Agreement"

PGI are trying to get Macquarie to waiver this condition.

So with this earmarked money and the expected profit on operations of about US$400k-500k per week, I do not think the repayment of $5m at the end of March is a huge issue even with forgetting share issues and refinancing.

The biggest issue, I believe, is to have money available to apply to the new project for the supply of clean ore.