Ann: Tucano Update and 2018 Review, page-15

"If things are on the improve why not go all out and do a roadshow and get a CR under way @ 4c to raise enough for next 18 months"

I think your answer is in the update (see quote below). Capital raisings would have been on unacceptably punitive terms. If I was stuck with this stock I'd be taking my chances with Great Panther for all the reasons explained by the new MD. Great Panther can relieve the pressure on the project's balance sheet. No point of inheriting a project on the improve if debt payments hold the company back. Great Panther deserve to get the project for a serious discount in this merger IMO, as the project is not at the wine and roses stage quite yet. If the merger goes through Great Panther will have timed their "pounce" to perfection. Esh

"The deferral of an estimated US$24-$36 million in revenue in 2018, due to the reduced guidance, has considerably decreased our balance sheet health, and increased our risk in the first half of 2019, due to our interest costs and sizeable scheduled debt repayments. Our diminished financial outlook meant we had to consider the options to deliver the best outcome for our shareholders in the shortest timeframe possible. We investigated multiple financing scenarios, from alternate and traditional debt providers, strategic investors, and corporate combinations. Weak precious metals sector sentiment, and a soft capital-raising environment, restricted our ability to source capital other than on unacceptably punitive terms, particularly as we have justifiably been in the penalty box due to operational underperformance. Ironically, our valuation declined as we systematically de-risked Tucano. Through our evaluation process we recognised that a combination with Great Panther Silver Limited (Great Panther) offered significant benefits and synergies; it was ultimately the best option for Beadell and its shareholders. Great Panther’s management has the Brazilian operating experience and, importantly, Great Panther has the balance sheet strength to support Tucano’s transition to a fully optimised gold mine and invest in the ripe growth potential. This will deliver increased value per share to the combined company’s shareholders, including Beadell shareholders, who will own ~38% of the new company. This transaction will create a new growth-oriented precious metals producer focused on the Americas, offering geographic and operating diversity and demonstrable organic growth opportunities. Beadell shareholders will benefit from the increased size of the new company, which will result in increased exchange traded fund demand, and also increased liquidity on stock exchanges in Toronto and New York."