Thanks GCI'm trying to get a handle on these debt facilities.The...

Thanks GC

I'm trying to get a handle on these debt facilities.

The first reference to this "Indian Working Capital Facility" seems to be in this quarterly with no ASX release to provide any forewarning of it.

The Noble Working Capital Facility of $1.5M was referred to in the ASX announcement of 5 September and is repayable within eighteen months.

The June quarterly made reference to a new loan from TTY to IRL of $1.5M:

"During the quarter, major shareholder Territory Resources Ltd (TTY) made loans to India Resources Ltd. amounting to $1.5 million. This loan amount is unsecured and has been advanced on arms length commercial terms, to be repaid on a schedule commencing in 2009."

But then, note 18(b) of the Annual Report notes that:

Transactions with other parties:

"In November 2007 the Company advanced $6,950,000 to Territory Resources Limited a company in which Mr A Simpson, Mr M Kiernan, Mr D Humann and Mr A Quadrio are or were directors. This amount was provided unsecured with commercial interest charged and was fully repaid in December 2007. In May and June 2008 the Company was advanced $1,500,000 from Territory Resources Limited. This amount was provided unsecured with commercial interest charged and is repayable by 1 August 2009."

If note 18(b) is true, I don't know how we will do it...

Leaving aside all the other recent stuff we have found out about the Cu price not really being fixed, what we now have is a pile of debt accruing: (a) the Noble facility; (b) TTY; and, now (c) HCL.

So, if I'm not mistaken, even if we do hit cashflow positive, we're going to have a truckload of debt to discharge first. In other words, we seem to be getting further and further behind...

Would be interested to hear from others to see whether I'm missing something here?

BUSH

PS. Just saw your post Hip Hop. Hope you're travelling well. Have a look at cashflows from borrowings. We've got $1M in the bank because we've drawn down on these loans.