In the lead up to commissioning of the Mine the Company will also need to raise workingcapital currently estimated as being R500m (approx. A$50m at current exchange rates).
'WORKING CAPITAL' not a 'cap raise' which will be sourced from Banks. Refer to previous announcements, the 'WORKING CAPITAL' will be sourced from Banks at a time when the project will be significantly derisked. Also, refer to recent Government statements urging local Banks to be more engaged with funding coal production!!! Not to mention access to New Noble's shareholder's who are funding RES's current 'WORKING CAPITAL' requirements - most of them are Banks!!!!!
I have checked with Management about this ill-conceived claim made without reference to previous announcements and I anticipate this erroneous claim of a 'capital raise' will be debunked!!!!
If shareholders appreciate the business model and factor in the opportunity to ramp up production, 6mtpa to double or more, one wouldn't be giving away their shares, as they did yesterday!!!! Not to mention, the value add the funding gives to the $200m already spent out at the mine for the 300 odd person's camp, water supply & electricity infrastructure and the list goes on !!!!!
Good progress has been made in accordance with past Board announcements and one would expect our very qualified Board & Management will continue to deliver.
Go RES, 'the last' of the world's mega coal mines to be funded !!!!!
RES Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
