Doctor,AVB had always indicated it was not spending money on PB until finance was sorted on AN.
They would use their own cash balance once finance was certain and this is why PB is rolling.
They were playing safe with funds and this has always been their plan.AVB running down their funds before securing finance would likely only back them into a corner with terms.
I see no mention of more preconditions popping up in the announcement.
What I do read is;
1) Interrogation of term sheets has concluded with two blue- chip Brazilian groups being shortlisted. Syndication will likely proceed with one, or both of these parties targeting completion before end of current quarter.
2) With prospective syndicating groups sharing a longer term copper focus, Avanco understands that the much bigger Pedra Branca Project is considered a financial “incentive” representing further opportunity for the Brazilians to grow their mining book.
-This word "incentive" means for the banks to deal with us.
Sharing a longer term focus means they are interested in future opportunities to offer finance.
It does not in any way shape or form mean precondition against us unless someone can point it out.
Cautious optimism is simply stating the obvious.The money is not in the bank yet we are spending our cash balance with caution expediting PB.
AVB Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
