CTO History > Major funding negotiations >$$$

On 30th Oct 2015 CTO announced it would not proceed with the KIG funding, it also stated that;

"Citigold will continue to reserve and consider its legal rights in relation to the failure by KIG to make payments required in accordance with the agreement".

As a SH one would expect CTO to exercise its legal rights against KIG. Question is what the outcome will be (if any) and in case the legal rights have merits how this potentially can in the short term improve bottom line.

In addition,  the company also made an ANN on the 31st Oct 2015 where it stated;

" In light of the Company’s position in relation to KIG’s failure to make payments under the agreement, Citigold has engaged in and will continue to engage in negotiations with other interested parties. Through such negotiations it is Citigold’s goal to seek to obtain a “superior deal” with a larger funding commitment than had been proposed by KIG and/or for Citigold shareholders to retain a greater interest in the Charters Towers asset and its future cash flows. Success in improving the deal would be a favorable outcome for shareholders.

Citigold understands that the process to secure funding is taking longer than the Company or shareholders would like. Given that this current project, has a 20 to 30 year lifespan, it is important to find the appropriate funding partner to go on this journey with us for the benefit of all shareholders".

Considering these announcements and the fact CTO did manage to negotiate a $72m investment opportunity, I can only encourage SH to be patient. Please have trust - CTO will find a new cornerstone investor and/or find other ways of funding its next operations - there are numerous ways this can be done.