I’m not so optimistic the funds are for anything other than...

I’m not so optimistic the funds are for anything other than working capital..they’ve got studies they clearly are overdue on delivering plus they suggested they were embarking on expanding the Buena Vista resource on the undrilled west side I believe. Amongst other operating expenses I could see them tapping investors for funds for those deliverables alone.

Regarding Iris funding facility, it doesn’t surprise me at all they wouldn’t utilise that right now. Reason being is that it’s possibly why the share price is stuck where it is. The company issued the 520 convertible notes at $2500 each ($1.3M) so either they’d need to payback whatever they borrow on that facility in full within 2 years (ie have to raise funds just to pay debt as it’s very unlikely we’ll see revenue within 2 years from now) or alternatively the Iris investor can convert the notes to shares. If holders have noticed, they have been slowly doing exactly this over the last couple months. The notices we’ve been seeing haven’t been listed options being converted, they’ve been the Iris investor converting notes to shares at very low prices as follows:

1st Aug 808K at 3.4 cents
25 July 682K at 3.3 cents
15 July 303K at 3.3 cents
8 July 606K at 3.3 cents
1 July 292K at 3.4 cents
17 June 598K at 4.6 cents
8 June 51K at 4.9 cents

They started with 24,096,000 ordinary “collateral” shares.
If they’ve not sold any we should see them in the Top20 with ~27,436,000 ordinary shares. But the company hasn’t published a Top20 since April 22, prior to the funding deal..I’m not aware we have ability to see the latest Top20 but I would be quite interested to see their current holding.

There’s still 472 convertible bonds left (or 30.2 million shares at current price of 3.9 cents). If the market is paying attention it’d be understandable there’s no great demand for shares right now when a single holder has so much ability to offload large volumes of very cheaply acquired or “collateral” shares, then acquire more cheaply and repeat. At the same time company management would surely be aware of how much actual or even just perceived price influence calling on additional tranches now would give to that investor.