Hi YnotinvestNot sure I follow your mathematicsLoan was $4.4m so...

Hi Ynotinvest

Not sure I follow your mathematics

Loan was $4.4m
so at the current price of around 10c they would issue about 44m shares issued to pay back loan, not 100m shares as you calculate

Note that at the time the loan was made the stock was 5.9c,
So had they raised in the market at that time to fund the company they would have issued circa 84m shares
ie twice the dilution over that of paying loan back today.

the loan to me looks like a statement of confidence by management and so far that decision on paper looks to have halved the dilution.

Who knows, maybe they have drilling success and the stock goes even higher making it look like a masterstroke for shareholders. Alas its a risky business and we have to wait and see.

The good thing about gold is you can forward sell to raise some capital and lock in a margin, and in a zero interest rate environment banks love to lend to fund mines that have a locked in margin. I think the capex for the project from the scoping study is $58m which includes about $3m in working capital and $9m in contingency. So it looks like a relatively low capital proposition.... but lets not get ahead of ourselves

it has been a long hard road for Rex shareholders, but hopefully we can see some light at the end of the tunnel.