Ann: Quarterly Activities Report - December 2022, page-23

First 23 Last

Share
Profile

Follow
Corgi

2,588 Posts.

1830

02/02/23

17:15

Post #: 66037025
Share

Originally posted by m0ngy: ↑

Let me state this clearly:
Moderate to high risk projects have to raise money by diluting share issues.
When a company is at the final feasibility stage, the DFS, other financing opportunities open up.
To illustrate, Hawke's Point is the foundation shareholder for both Ore Banda and Rox Resources.
With large shareholdings in both companies it is in their own interests to assist them to get into production.
Ore Banda recently secured $12.74 million in debt and royalty funding from its top shareholder Hawke’s Point Holdings, in a move to shore up the development of its Riverina Underground mine while avoiding dilution to investors.
IMO Rox Resources is very likely to follow this pathway to production if necessary.
Rox had $10.5m at the start of this year and are selling Fisher Gold and Eureka.
Very likely they will end up with $12m ie $1m per month this year to drill and carry out feasibility studies.
If they need more they should be derisked enough to get finance without dilution.

My Opinion

Expand

But you posted implying that CMM got the finance facility without having the dilute shareholders... which you were wrong!

Now, with OBM.... Have you ran the numbers on what would be the equivalent % fee would be all up on the loan?

OBM are getting raped. But they had no choice. Have get much lower interest rates from a reputable financial institution.

You also failed to mention that HP tried to steal CMM for around $55mil and CMM were very close to letting the company go before a few board changes.

RR will FLOG RXL OFF the very first chance he gets!

RXL Price at posting: 18.0¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

What's causing the cost-of-living crisis, and how to navigate it

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war