Seeing we have had the usual negative comment from the non...

Seeing we have had the usual negative comment from the non holder, let's look at the deal.
10% interest for such financing is totally expected and so is the loan establishment fee. Having just gone for an investment loan I can confirm this. In a high inflationary period remember its the loaned money that loses value so interest rates must cover this.

As stated, this capital funding does not dilute the existing share holders as opposed to the company seeking a capital raise

The options, look at the detail. 60,000,000 on the first transaction and 40, 000, 000 on the second. The strike price is 4 years after initial drawing and will be 20% premium on the VWAP at the time of drawing. Wow indeed, if the share price is at least greater than 20% higher that will be good!!!. If the price is less than the strike price only a stupid government would buy them just to convert them for less. Okay that's quite possible!

If the government takes the options as shares it will be quite a socialist move, and frankly I would rather they takes the profits and use them for what governments should be doing. Remember options converted to shares is a cash injection for the company although dilution is associated with it.

I see the options as the government saying, we will supply the funding, but if you make big profits we want a piece of it, a resource profit tax disguised.

On cash reserves lets wait until we get further updates (salaro does look very promising) and ignore the uninformed noise.