Heres hoping those brokers someone mentioned are wrong (happens a lot these days) and its not a capital raising or we are heading sub 10c (which I did suggest a while ago and got shot down by a few posters on here).
I think there could be a combination of places where the funds come from: - sales of existing Aussie mine assets - now that Gillard is in this whole mining super profits cash grab will be watered down significantly in my opinion. This bodes extremely well in sealing any deals that may have been close to closure.........it would be great to get rid of Ruby as this would net KRL the most clam. Also the price of iron ore has done well in recent times making this mine more attractive to potential purchasers. Did some searching but not sure of approx value of Ruby, any ideas? - as Jackfire mentioned (and so has KRL previously) a convertible note facility. - sales of coal, should be a given but if the convertible note option is chosen then some of the $$$ from the sales of coal will need to be used to pay the interest on the facility. - dont think the forward sales of coal is an option as the track record of KRL does not appear strong enough for this to be of value to any party.
Whatever the case, announcements have to be due very soon as we all have to vote to give KI the green light and we cant vote unless we have a clear picture of the medium term funding.
Happy hopping.
SLE
KRL Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held
