As I have been posting for months the high cost of production,...

As I have been posting for months the high cost of production, unfavourable production split and low price for its production cannot be profitable.
This ann confirms that judgement and shows that the company has embarked on a rather desperate bid to change its production split and increase its resource to ensure higher and better quality volume. I say desperate because the terms of the finance are onerous.
Note that the company is still to meet the conditions required to get this dubious finance deal, one being that it must show that it can repay the debt. This makes something of a mockery of announcements around forward sales, while the announcements are probably true it now appears that the profit is low on those sales. Should the company not meet the terms of the finance deal and be unable to raise the capital elsewhere, the share price will be at 10 cents or lower instantly because it is likely to become insolvent. A company could by profitable but can't raise the money to become so and winds up, that is unfortunate but a common occurrence for mining juniors. I wouldn't say it is a high risk but there is a real risk of that happening.
Looking forward a key question is whether the finance deal could achieve the company's goals required to become profitable. i don't see that there is enough money to do that and if so where will more finance come from and on what terms? It will be a long and hard struggle for profitability and success is not at all assured. That's why we are seeing a massive sell off in the share price, which i see is now approaching the discount to the market price - yet another problem for the company. I don't give investment advice but as stated before i saw this coming and got out, took my loss on the chin. Holders should consider these points carefully.