Well if you think I make sense then I’ve convinced another...

Well if you think I make sense then I’ve convinced another sucker. Haha.

I don’t think financing is a formality at all. I think the working capital facility for TF that Blue Cap will provide should be enough to plug the gap between expending cash at TF and receiving income from the gold sales (60d based on what James said in the last interview).

With respect to financing the broader BC project, that’s a long way to go. We need to make the vendor payments before thinking about that. Then we need to work out if we have enough cash from the TF campaign to fund the equity component of a debt package.

If the CAPEX was estimated at $30m for 500ktpa, I’m guessing the CAPEX for 750ktpa will be much closer to $40m. Frankly that’s a wild stab but let’s say it’s accurate for now.

In a typical debt finance deal you can hope to get 60/40 or better yet 70/30. That means we’ll need up to 40% of the CAPEX in order to draw it.

If CAPEX is $40m and we need 40%, that means we’ll need $16m of our own cash. If we secure 70/30, we’ll need $12m. And that’s after we make the final vendor payment.

So there’s a lot riding on TF and how well we can manage the costs and ultimately the margins. If the info from ARS shows that we won’t make the full $20m from the TF project, I’m tipping we do another campaign mining project to grow the cash pile but that’s just a guess/hope. Alternatively we could bring in a partner to fund the development. Options aplenty but they’re all hinged on the success of TF.