Remember that this rights issue is effectively only to cover the cost of the acquisition, and a bit of care and maintenance. If things progress, there will almost certainly have to be further cap raise(s) for test work, plant modifications, new ponds and working capital until they can get production to a level that covers operating costs. KLL was burning through $3-4m a month before they went under, so that’s an indication of how much cash might be required.
RWD Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held
