RAU currently has about 1.3 billion shares on issue. The share price closed today at one cent.
We are still waiting for a BFS for the Amayapampa Project.
But when completed, how will it be possible for a company trading at just one cent, with very little cash, to come up with the tens of millions of dollars needed to get everything into production?
A one for one share issue at one cent will only raise $13 million. So seriously, who is going to risk debt financing a gold project in Bolivia to a company with RAU's track record? If any financial institution was prepared to risk debt financing the project, on what terms? What would be left over for current shareholders?
Remember the days in late 2007 when RAU had many hundreds of millions less shares on issue and ran to 29 cents.
I am quite confused here, about how a now one cent company with 1.3 billion shares can possibly get this project over the line, so maybe some loyal shareholders from the 29 cent days might be able to help me out.
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