Ann: Pause in Trading, page-186

Well the initial $20m funding is to repay previous indebtedness but only if DFS/Decision to mine comes through, we can disregard that for now. Not payable unless decision to mine takes place.

I think the issue with this debt is that its more than the current market cap. A conventional CR at a discount is generally done for a fraction of the value of a companies market cap, hence less of an issue as SOI doesn't increase that much.

Tranche 1 - $5m - Conversion 25% premium at 5 day VWAP before & after drawdown - Essentially assuming a VWAP of say 2.2c (above where we are now) you'd be looking at about another 220m shares excluding the ongoing interest payments the lender can also take in shares.

Tranche 2 - $10m - Conversion 50% premium at 5 day VWAP before and after drawdown - Run figures on your own VWAP but I'm gonna assume 3c, you'd be looking at another roughly 220m shares excluding interest payments.

Tranche 3 - Not gonna bother including this yet.

Once you take into consideration all the shares potentially issued to MGI by the time you get to the point they need to then go and raise capex were talking double the current SOI before tranche 3 and the required capex dilution.

Can see why the market isn't thrilled. Minimising dilution is paramount.