"If nothing else, can ASIC not act purely based on the...

"If nothing else, can ASIC not act purely based on the irresponsibility of management to lend away $5 million and put the company in such a precarious cashflow position?"

Should ASIC or the ASX ask, this is easily explained away as something along the lines of "we said that this was what the money raised was for! We said that we were putting it into exploration!" or "the money is available when we need it. The directors of CVI have no expectation that there will be difficulty in recovering the money or that the cash held position will make the company nonviable."

Easy to talk around - especially when the funds essentially go into a black hole!

CVI's latest quarterly report lodged with the ASX shows as clear as day that by lending $5 million to another entity they have put the company in a position where it has practically no cashflow.

Just as a slight quibble - cashflow is something CVI has certainly had over the last two years! Money flowing into the company then directly back out of the company!

Would not be surprised in the least if a story came out that the money laundering process was funding arms for Africans!