Equity provides way less risk than taking on debt and the larger amount will give them a buffer for working capital and also allow them to start drilling full time.
I think management have done well here imo. They had a crack with a small raise/con note giving the stockpiles a chance to fill the capital gap but it didn't work out so now they're raising an amount that gives them a buffer as well as allows them to start exploring which is great. Id have a much bigger issue if management raised this amount on the last raising terms without even giving the stockpiles a chance.
Dont forget they are looking at producing 30koz -100koz pa, so $10-$12mill is a pittance in comparison to any other gold company's equity requirements for similar production metrics. Theres only $750k of CAPEX left, so most of this raise will go to working capital and contingency which gives them plenty of wriggle room and means this is looking like the last raise we should have to deal with, which is a great thing.
IMO
VTX Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
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