The $4M in capital was already paid for 160 CN's at $25k...

The $4M in capital was already paid for 160 CN's at $25k each.

By redeeming the CN's the holders get shares at 20% off the 15day VWAP to date of excise. The $4M then gets removed from the CLZ balance sheet as a liability of $4M.

There is an issue of resource quantity as KAT GAP is inferred, no resource update in quality and quantity since 2017.

The $6.5M spent on the Gekko plant is an issue especially if it won't be used, better use would have been to increase resource quality and quantity with more drilling results to at least indicated

You would then find the market more receptive to more share issue capital raising rather than off market loan shark rates at 33% and above.

This is all too late now as they ran out of capital as couldn't raise on market.