Cap Raising Discussion

Have read a few posts discussing a possible "upcoming" cap raising in Tawana and there need for more cash. I wanted to start a discussion thread on it because I don't believe it is imminent and don't believe when it happens it will be large.

My reasoning is:
1) They have prepayments that are funding a large part of refitting and adding the modules to the current plant.
2) AMAL also have to start contributing. They were only free carried until TAW have
a). to spend, by 31 December 2017 (or such later date as may be agreed between the parties), a minimum of $7.5 million on exploration, evaluation and feasibility (including administrative and other overhead costs in relation thereto) (“Expenditure Commitment”); and
b) to spend, by 31 December 2019 (which is a new commitment by Tawana from the Binding Term Sheet), $12.5 million in capital expenditure required for upgrading and converting the plant for processing ore derived from the Project, infrastructure costs, pre-stripping activities and other expenditures including operating costs (“Capital Expenditure”).
They must be getting close.
3) They have tailings they can work through to start things off so this should also allow a quick start.
4) One would presume they will take on some debt at some point especially being so undervalued, why dilute further, with prepayments and off-takes, surely they can get debt financing.

I guess they probably need some cash for commissioning and pre-revenue mining phase but I don't think it will be exorbitant. And I guess they would be some insto's lining up at that point.

Interested in others opinions?

My opinion only. Not investment advice. Do your own research.