I'll say it again. They needed the cash to meet the requirements for the QIC loan. $5m.
This company has always run low cash, so they have to raise at different times (no surprises) every small resource company does it.
This is about finishing the doubling of the processing capacity, increasing the resource with a huge 24km of drilling and finishing the underground BFS and trialing the underground. All of which will provide a larger NPV, better cashflow and hopefully better profit which leads to higher share value.
The other choice they have is NOT to take the funding, delay the underground (which represents to 80% plus of the resource), which means things take longer and increases risk.
EQR Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
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