small amount to be hedged.mining news item, page-19

Now that Ive settled down a bit and had a slower- closer read of the item

*The TSX listing actually answers my question as to why the C/note issue was coming so late.It isnt coming!

"The remainder of the outstanding financing requirements will be met through an equity raising when Aim lists on the Toronto Stock Exchange LATER THIS YEAR."

The doubt re the TSX listing may or may not turn to optimism DK when harking back to what happened to the sp prior to the $23.75M issue.This time however we will have possible debt confirmed as well as the project physically advancing with contractors busying themselves at the site and hopefully well into the decline.

".........soon to be confirmed debt facility.

Aim is set to complete its debt financing, believed to total around $80 million of the $145 million required to bring Perkoa into production, IN THE COMING WEEKS."

Not only this but we should also have an offtake

"Flory added that the company was close to finalising negotiations for an offtake agreement with commodities trading group Louis Dreyfus"

As these financing and offtake developments take place and the decline towards the orebody is initiated the sp SHOULD become stronger and hopefully yet another minimalising of dilution will occur just as happened with the last listing.This is quite clever really when one thinks about it as it will allow the funds to be raised closer to when needed(later in the year) and when the sp is stronger which would not have been the case if they went with a C/note issue in the same vicinity of the rest of the raisings.


*As far as the hedgings concerned it depends a little on the way you read it DK.

MF mentions that

"we will look to take some minimal hedging as these prices wont last forever"

Seems that the "minimal" might be referring to the time aspect of the hedge.

It would still be prudent for them to at least lock in a revenue flow that guarantees payback of the debt facility which would probably mean them hedging the majority of the output for 18-24 months,even though surprisingly,the GROUPS behind the debt arnt forcing them to.The shorter the term they hedge for the higher the price they should get(theoretically).

Interesting term to use,GROUPS,dont you think?

*As far as a lack of communication I fully believe these guys have a couple of options that they are leaving open to themselves in regards to each of the raisings required.

It would only be speculating as to the reasoning behind a TSX listing but is there really any point as long as they get the cash from somewhere.This way of raising also gives them a timeframe flexilbility which does not commit a market(UK/Europe) that must already be a little negative towards any more capital commitment to any project because of the current weakness in base metals.

Will Canada be any different?Well as already said by a couple of others on this thread the Canadians are a little less risk averse to African projects as evidenced by the presence of Anvil and First Quantum(not to mention other TSX listed companies in Africa)in the Copper Belt region of the DRC and Zambia.Not exactly a riskless environment and a fair bit higher in these terms than what Burkina Faso is considered.

But in spite of all this it still wouldnt have gone astray to mention to us long suffering punters that they might be considering listing on the TSX as another option to raising the other US$35M in the last Qtrly.Surely they would have been aware that the C/note issue was fading as an option.But then with the negative base metal sentiment would it have been prudent to mention they had to change course on how they were to raise the rest of the capex for Perkoa.

d.