gs update announcement out, page-10

cg I hope you are right!

However, from the announcement:
"are likely to include: .......with existing shareholders given preference
for participation in any capital raising should it be decided to undertake this"

The most common way for SHs to participate in capital raisings is through a rights issue. Reading between the lines, this whole announcement is about refinancing to get production happening.

End of the day they don't have that many options on how to refinance.
1/ new loan with rollover - nothing changes -no point IMHO
2/ Capital raising - good if they could get people to invest
3/ rights Issue - where SHs participate, possibly renouncible
4/ convertible notes or similar - again unlikely IMHO.

To invest in "operational improvements" they'll need more funds, to get "longer dated maturity" they will need more self funded capital which hopefully in turn will enable production to be ramped up to breakeven or better.

In short, sounds like they are raising more capital to get production happening & to enable a longer maturity date of their debt. These short term finance extensions need to be addressed. With production happening and no threat of debt maturity hanging over their heads, they can get on with the sales process more confidently.

Who knows they might even attach a few options to any rights issue and give themselves 40m at the same time.