I haven't looked at the actual Macquarie Bank loan details, so I am happy to take your word for it. However that type of scenario has been par for the course for junior companies going cap in hand to the Banks to kick start production. Most recent start ups have failed miserably.
Junior miners have been screwed 'every which way' over the last 8 years, particularly in regard to hedging.
The danger in this environment is not to give away to the bankers, through hedging and over generous entitlements, the windfall gains that will come in the gold market when gold has its rocket launch.
Chris Cairns is a smart cookie when it comes to geology. The jury is still out when it comes to financing. The recent placement is an example.
I sincerely hope he doesn't continue to err on the side of conservatism and shoot share holders in the foot in the process. To my mind the recent fund raising was badly timed for share holders, as IGR missed out on a spirited push in the gold price. In his defence I guess he wasn't to know, but I suspect that the placement could have been done at a much higher price.
The raising of finance for mining development needs to be very carefully worked out and loyal share holders should be given first dibs and more consideration than a piddling $5000 rights issue.
And there is no great hurry as far as I'm concerned. Gold is poised to move strongly in our favour and ounces in the ground will eventually be viewed as a prized asset. Maybe then the finance options will fall into place easily and advantageously for share holders.
As far as I am concerned, let the parasitic banks buy on market if they want a piece of the action!
