perkoa finance.yet another scenario

Been doing some thinking on Dk's comment that Aim's future is virtually assured.

It started my mind thinking of synergies between the unit issue,Perkoa's finance and what MF mentioned a while ago that if the sp was strong enough he'd think about more equity rather than debt.

At Indaba he stated

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"Speaking to MiningNews.net on the sidelines of the Mining Indaba event in Cape Town, Aim managing director Marc Flory said the company would not be required to hedge any of its zinc output under the terms of the soon to be confirmed debt facility.

Aim is set to complete its debt financing, believed to total around $80 million of the $145 million required to bring Perkoa into production, in the coming weeks."
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Now theres a couple of things that are of interest here.

The first being that we all thought it was a little unusual(to say the least)that lenders would not require much, if any,hedging.

The second being the figure of $80 million.

I'm now getting the impression that this unit issue IS what MF was talking about here as both these factors fit what was said in this item.In other words

WE MAY NOT BE SEEING ANY DEBT AT ALL.

After all nobody said the debt couldnt be raised purely via equity AND it seems the significant holders and other Nth American escrow takers(who APPEAR to have backed this unit issue)like what they see,even with the consequent dilution.

Now do we all get the implications behind such an occurence.

We have now had 88m + 26m raised which gives a total of 114m raised towards the Perkoa project/Mumbwa exploration.

We also have a rather large potential wad of cash available in 3 months post the EGM(shareholders approval)which would easily cover the rest of the Perkoa finance required and then some.

So once the escrow receipts become available for conversion its highly likely we will see a TSX listing to make these receipts tradeable on conversion(being only Canadian investment instruments)and therefore the subsequent raising of the final amount of cash required for Perkoa.Just how much will be converted by the holders will obviously be of REASONABLE interest to current holders.

Now I doubt these new unit issue takers would have done so on the basis that they will not see any decent upside to what they have taken up at.

If the above is what has been intended by the company all along(rather than debt via lenders)then an offtake that implies the mentioned 130M OCF firms significantly imo.

It also gives reasoning behind why we havnt seen the offtake as yet and perhaps gives a timescale as to when we might be likely to see it.

It also has implications for what the sp is likely to do over the ensuing months.I doubt very much that we are likely to see the sp retreating much,if at all,if the intention is to list on the TSX via these escrow receipts.Also consider that current buying may in fact be Nth American investors taking more postion and may be looking at transfering this stock to the TSX once Aim is listed there.

Is all this possible?

Well it may or may not be,Im no corporate expert.

d.