I think funding talks however have been far more positive with the banks rather than the Chinese base metal traders. Did I see that a MOU had already been reached with a Bank on the AGM presentation timeline (checked - yes I did. Marked as a solid line in Oct/Nov). Was this talked about at the AGN?
With hedging/forward sales of perhaps around 150,000 oz of gold PRH will be able to secure some very substantial debt funding . When the deal is done it will probably come with a requirement to raise a solid amount of equity funding (with underwriting). This could be enough to get gold production underway with the more costly polymetalic processing facility coming later with a second tranche of equity funding based on offtake agreements.
The debt funding announcement (I anticipate it before Christmas) should see a solid rise in the share price. I think todays announcement was a pre-cursor. I don't think todays announcement would have been made without the bank funding being close to conclusion.
The equity component should then be at a significantly higher price than today which will make current holders a little bit happier.
The funding package will have some money allocated to further exploraton at Kundip and other locations.
This is clearly the right pathway (as you and I have previously advocated) and I think we will see some positive SP movement in anticipation....seemed to be the case today with a significant buy order at 27c coming in after the announcement....and it wasn't me either!
I feel a little happier with management after today.
Cheers
robo
PRH Price at posting:
2.4¢ Sentiment: LT Buy Disclosure: Held
