takeover. not such a bad thing, page-7

A nice post BH!, however:

1. Yes, it is unusual for a project to go ahead without a bankable feasibility study, because most projects by juniors are not fully funded. Instead the company goes cap in hand begging for finance from a bank.

2. Of course BSG carried out their own feasibility study.
This included costings for an open cut development PLUS anticipated production and operating costs. BSG certainly didn't say, "Let's have PJO raise some money, start constructing a mine and see what happens as we bumble along."

3. BSG's plans were for an open cut operation with underground mining expansion to follow later - no doubt in my opinion the expansion being funded out of the strong anticipated cash flow.

4. There is no firm evidence to indicate the project funding was running way over budget. If an extra $20 million or so was needed that would easily be obtained in this market by a placement.

Cheers,
SP.