Ann: Quarterly Activities Report and Appendix 5B Sept 2018, page-12

Again - with the greatest of respect - I believe the unsecured capital lending markets works a little differently. Why would any lender waive a 15% termination fee for access to capital? Not to withdraw funding access, but rather instead to incentivise  the facility being held in place and used.

My guess as to the reason the facility hasn't been drawn down on further - aside from the 11% interest paid in cash for Tranche 1, and the cash or equity for Tranche 2 - is because of the following statement referenced in the quarterly and previous announcements:

"The noteholder [Arena] is also entitled to options, subject to shareholder approval, equal to 40% of the face value of the notes exercisable at a price equal to 130% of the 5 day VWAP prior to the date of issue of the respective notes, with a 3 year term."

If I've understood the agreement correctly (?), currently at 40% of face value, Arena have over $1.55M of options in the game (only in theory and at an overpriced rate). Should Arena have a buyer lined up looking for NXE type assets, they could choose to exercise their options whilst the potential buyer performs a few market trades...and viola! Or Arena could simply tank the company and do the asset trading off market.

I think you were onto something Davisite in your post from May (Here) about the drop in conversion price forTranche 2B. I believe the 2B conversion price, accompanied by the options already available to Arena means management would be cautious in accessing more funding given the implications it might have on the make up of the top 5 shareholders. Our current Directors aren't sticking around for the fun of it, they are in it for the mega pay day an operating mine will bring. Can they be sure they would still be at the helm if lots of options were exercised? 

All speculation on my part.