Ann: Yandal Gold Project - Orelia Resource Upgrade, page-12

Hi Copper, agree with all you say.
It will be interesting to see how the handle the relatively small equity component that they will likely need.
I am hopeful it will be a non-renounceable rights issue, perhaps 1-7 at say, $0.25 would raise approx $17.5m before costs. While some might think this is a lot, 99 times out of 100, companies never raise enough capital when they start on what I view as the official start of the development phase. Actually funding the refurb. Yes, they are not building a new plant, but... mining is damn hard and getting things 100% right is almost impossible. So many miners have to tap the market just when it should be smooth sailing and no raising is wanted... yet it happens again and again and again.

So $17.5m would see EAR have approx $25m in cash (June 30 2018). With a 6-7 month time frame for becoming a producer (arguably, before the end of 2018). With admin cash burn of $500-600k per quarter, there goes $1.5m (to March which would include the commissioning). That leaves $23.5m. If the refurb costs $30m, they will easily be able to borrow at least $25m (surely?). That would give EAR $25+23.5 to fund and explore over the next 6-8 months, as commissioning usually take around 2 months. I have no doubt the brokers are knocking on EARs door very hard to get in on whatever option EAR management choose.

I hold BRU (an Australia oil explorer). It had a couple of broker reports pop up before the non-renounceable raising that was done mid last year (they obviously wanted in). It was an amazing outcome. 120% uptake by existing shareholders only..... The brokers got absolutely ZERO. (( The SP is now 130% higher than the placement price)).

That is what would impress me the most, but... I have not seen a similar outcome to date with any gold developments. The extra cash raised would also allow EAR to not have to hedge too much forward production, as I at least see AUD $2000 a reasonable target in coming years.

Lastly, the extra cash they raise could be thrown into an even bigger drilling campaign. Now that NST have shown their hand (they already like the ground), there is some extra justification for drilling more, as every ounce will increase the price NST will have to pay.