Ann: Cardinal Receives Key Water Extraction Permits, page-3

Hard to see this as anything but bullish. A key permit issued, good signal from the Ghana Gov and EPA dept imo.

The real news is an early repayment of Sprott loan with US$8M. At 66c USD, that is a tad over A$12M. Cash at 31 Dec 2019 was A$20.5M, with an expected Mar Qtr spend of A$5M. The maths says CDV will have A$3.5M left end of March, and a working capital ratio of approx 2:1 (new Sprott covenant 1.1-1).

To me this signals one of two things.

Most likely, CDV expect to do a M&A funding deal around the end of March after the EPA permit is issued. Why else make a 12 month early repayment and run down cash to $3.5M before you have to? At the current spend rate of A$%M per qtr, $3.5M wouldn;t get them half way through the June Qtr before that Sprott working cap ratio covenant was breached. Even if they were going to do a CR placement for funding instead of M&A, why the hell put themselves under this sort of solvency crisis and time pressure unnecessarily? Batsheet crazy stuff.

Or, they are playing 3D chess with the market. Signalling that they will not do a CR by unnecessarily putting themselves under enormous time and cash pressure as a red herring. Market joins the dots and gets excited that they must have a M&A partner in the wings, because nobody is that batsheet crazy. Then whack... after the price has been run up in excited expectation hit the market with a large CR.

History tells me either options a possibility. Common sense tells me even if our illustrious leader wanted to play such Trump-esque games, the BOD wouldn't play along. I can't believe they are all willing to sign-off on such a whacky red herring option. Once you rattled the tin and it became obvious you were game playing smucks who would want to back the same BOD with >$100M to actually build/run the mine?

So am I right or am I the crazy one? Looks to me like a clear signal M&A on the way and close at hand ....