a conundrum

Just caught up today with the weekend posts .

Having puzzled over it like most of you , jotted down several positives and negatives of Mr.Flory's revelation to Mining News , which has either been supposed to be"off the record " , or he is setting this up for some fast and furious action.
Rather that try to go through all those positives and negatives one by one , seems to me that some basic fundamentals arise :
* convertible notes --either he can't get them away at the strike price / conversion time / coupon rate ---or he doesn't need to , and I think the latter is the case .
* $80 mill US debt funding --a mighty big coup , if he has done it will either bank lenders , offtake partners and /or a combination of both ( which seems likely )--and if it is to be without a significant degree of hedging , the presentation of a short pay back period must have been accepted by a some pretty tough nuts in financing:or
* can't help but think that the recent equity of $28 mill that Flory has raised isn't enough in the ratio of equity to debt , to convince the debt financiers to cough up another $80 mill -therefore :
* Tawleine made a one liner post about Mokopane which might just have some validity --sell it for xxxx to shore up your cash position to say $50 mill +++( they are talking 3 billion in potential in ground value ) , and lenders are then more comfortable , with a 1/3 cash position / 2/3rds debt , and with a relatively short pay back time , this might be a very plausible proposition .
The Quarterly says Mokopane is under review, and with Perkoa the potential cash cow that it is , why would you try to work it , or JV it ( in South Africa , just too hard !) .

The feeling that we are "kept in the dark " is something that really should not have to be tolerated --but in fairness ,Flory has said that the financing /offtake arrangements have been in a state of flux ( thats spelt correctly , even though I would like to spell it more in the venacular many times in the past 12 months !) --so on balance , I think I am more comfortable now with what might be evolving , that 2 months ago , nothwithstanding the radical slide in the share price .

I guess the proposed TSX Listing might be just the final leg up in the finance , and at a much more robust share price , when the project is at "certainty " stage and very near to putting ore through to ship out stage .

Given the above , I think a buying status is more appropriate now than the alternative --thats if the Mining News got his facts right , and its not mushroom breeding season at Indaba !!!!!!!!!!!
But its fairly obvious that the share price action has to resolve on volume soon , one way or the other .

Sorry if this hasn't addressed some of the other viewpoints of Aim holders in the last two days , due to some other pressing duties .


cheers