They did still have the $18M cash in the bank, along with a book debt of $10 to be repaid in due course. In the meantime they have the cash to use for the purposes for which the loan was arranged.
This is common practice with many companies, not just miners. They need cash at bank to be able to fund capital asset purchases, projects and for day-to-day running costs (working capital).
The day will come (soon, we hope) when they have sufficient income to be debt free, but until cash flow builds up, having loan funds available (even if just for unexpected contingencies) is good business practice.
KSN Price at posting:
8.0¢ Sentiment: Buy Disclosure: Held
