"@rexsh or @kmuirhead or anyone else, assume whilst not dilutive, the rates/covenants required aren't going to be favourable? Does anyone have a previous example of where this has been provided to a small cap explorer with no production revenues? Whilst it looks almost certain this will be going to production, it seems high risk for a lender?"
Jezza, I am not the expert on lending. but what I have said previously seems logical to me.
First off, before a lender lends money to a lendee they would do their due diligence to make sure they would get their money back if the lendee defaults on the loan. Now lets say WGO wants to borrow say $40m with WGO's share in WE as collateral. If WGO defaults on the loan would the lender get their money back by selling this share of WE to someone else? I will leave you to answer this.
I think that worrying about lending to a small cap explorer with no production revenues is irrelevant.
WGO Price at posting:
12.0¢ Sentiment: None Disclosure: Held
