I am not sure most understand capital markets. To me this deal is very reasonable. No it is not 26% annual interest get a calculator out pls!!!!
Interest rate is 10% p.a. for 2 years and capitalised upfront + 2.5% est fee for the 2 years.
So if you do simple maths you say ok FV for the 2 years!!!! is $9.075m + 2.5% est fee on 7.5m ($187,500) = $9,262,500 again over 2 years is an interest rate (all in costs) of 11.75%
No royalties, no break fees ......... + If VAN goes up they can convert at 6c which is 100% + premium
I do not think any other gold explorer will find a better deal anywhere
To me this is an amazing deal so not sure those that think this is bad actually understand financing of small cap resource companies
(Not advise, seek professional help)
VAN Price at posting:
2.9¢ Sentiment: None Disclosure: Not Held
