Sold out after the two announcements, the anns raised more questions than answers. Share a few points with existing holders, DYOR.
1. Resource inventory went down in grade and tonnage compared with JORC resource earlier in year.
2. PFS anns state End of june cash on hand instead of current COH.
3. The purpose of the $72m facility is questionable, at best it is for the the DFS at worst it is for current cashburn. Either way the company isn't making enough money.
4. Timing of DFS is questionable, this really should be funded from cashflow rather than outside funding source.Why charge ahead when the house is still disorganised. (Selling a dream?)
5. The funding facility terms are terrible, in my view worse than cap raising. Instead of going to existing shareholders for funds at 10% discounted share price, they are using outside source instead. I mean who doesn't want to get shares at that discount? The audacity of pulling this one on the shareholders.
6. Company yet to prove it is cashflow positive in any way, this would be a great anns to shore up confidence.
You have been warned DYOR
BLK Price at posting:
29.0¢ Sentiment: None Disclosure: Not Held
