Cashlow statement is not a P&L - so Cash on hand at quarters end...

Cashlow statement is not a P&L - so Cash on hand at quarters end gives no picture of short or long term liabilities.

Ground issues at A1 have put them pretty much 3+ months behind on accessing and stoping Victory - sounds like as a result of that they’ve racked up a lot of bills. Union hill obviously hasn’t performed on grade and has probably been running at an overall loss as well.

This has put them in deep trouble now. The resource at victory isn’t likely to have large or definitive enough to get financier backing. They would probably have gone under without gandel agrreeing to back them. Whether Gandel believes it can turn around, or are just so far down the hole themselves on this and looking to buy some time is anyone’s guess - but hopefully it’s the former.

They can’t or won’t fund it on their own (ie it needs more funding than the can or are willing to provide) and with no one else stumping up they’re keeping shareholders in the mix.

If they (Gandel) felt they could manage it themselves they’d have stumped up funding in a juicy con note deal to replace current or have let it go into VA and competed with others over the spoils (but creditors like squadron get the up on shareholders in that situation).

Regardless of how it got to this point the rights issue sounds like the only option available to them at the moment - and with such a large capital requirement they need to pitch it at a low price to have any chance of getting up take.

Whether participating in it is a good idea or not really comes down to whether they have stoping at Victory North sorted and how well it’s performing.