Lets hope they find a solution. It is sad when you think that a good resource which could be a good mine can be mothballed because of management. But it does all come down to them, and they need to make a sacrifice to get this off the ground.
Personally, my opinion is they need to do what Equinox did. Get a bought deal financing package; sell $100M equity now at 30c, and then ML lines up to buy another $100M at 60c and another $100M at $1.20, average it out at 60c price for equity. We get diluted, but it would end up as a $7 stock nevertheless.
Debt, you just cop 12% interest, 15% interest if you have to. This will come down in time as the economy cools and project risk evaporated. But right now, you could get to $3 in no time via getting this under way - and then issue more equity to crush your debts later.
Geez - the prime concern now is to damn well get it GOING.
AXO Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
