Ann: WWI Raises $7m to Commence Underground Mine Development, page-73

@Gibbaz

Show me a single company that has raised 100% of financing for production? Better yet, why would any company raise 100% of finance, which they have to repay plus interest, rather than do part-CR which is basically free, contains no interest or debt and never needs to be repaid?

I would much rather the part CR/funding route which is the route taken by every gold explorer-cum-producer on the ASX. Not one has raised 100% of production costs. To do so would be negligent when you have free money sitting on the site in terms of a CR (yes, short term pain for SP, but long term less debt).

Also, you cannot tie finance for production of a mine to the head office costs and staff costs in Melbourne. The two cannot be linked, and never would banks agree to finance to "keep the lights on". I assume you know this, and you are just trying to throw some confusing comments.

In terms of the "logic" behind the route - If they released the DFS and said we have secured $30mil financing, but still only have .53 funding for head office and staff costs, then the DFS would be a sell the news event, given a CR was around the corner.

By raising now, this will mean the company has funding for 12+ months, and will allow more investors on DFS release...

Some of the fear mongering on this page is getting over the top. Reserves over 1moz to be likely declared in the DFS, over 60,000 a year in production (more than $120mil revenue) and people here fretting over the company when it has a MC of $88mil, and less than likely yearly revenue, not including JORC and W/A property....a CR was required, it is done and now we can move up.