my read on the coc release

I think the noise around the CFC's I&C offer at 35-40c has been overplayed on this thread. It is important to balance it with the rest of whats been said in the CoC release.

The misleading statement is the one reading "the lenders have no taken any action in respect of these defaults". On the contrary, it seems the lenders have required the following three things:

A. Withdrawal of WC facility (10m) and corporate revolver (25m).

B. Of the remaining 39m m2m hedge position in DML's favour, the lenders have required a further 25m be closed and applied as "prepayment" of June (7m) and Sept (15m) loan payments. This leaves a balance of 3m (less interest) to top DSRA (taking it to 8.5m) + the remaining 18.2m (less operational costs), so it comes to ~26.7m cash at hand.

C. The lenders also require the company seek an additional equity contribution of 30m by 15 Aug. The lenders will decide whether this will be applied to prepayment of loan payments OR to increase the DSRA credit balance.

This seems to be why the stock is down. They need another 30m of equity by mid-August, which at today's price range represents an additional 90-150m shares, excluding a discount (NB: CFC's offer conditional on no equity raise). It seems the market is pricing this, ahead of CFC's takeover, unless such offer (or any other offer) becomes realistic.

I suspect they are trying as hard as possible to not only find a solution to the overarching debt problem, but also avoid (at all costs) the 30m equity deadline - this is what they must mean by other non-CoC options. eg. a JV or such with a bigger richer counterparty, just to get them out of the hands of the lenders and CFC.

The board is walking a very fine (and deadly) line and needs something to go their way, so they can focus on the main game - dig as much high grade Cu out of the ground and sell it.

Good luck to all.