A relevant question at this time would be something like "how secure was the financial committment"? Pacific possibly had an escape clause somewhere in the agreement, but if not, there could be some liability on their part since GBM would not have sought alternate financing arrangements as a backup.
Another possibility might be that GBM commences as full scale production as possible, even though they may not get the potential yields.
Yet another is the Victorian governments desire to get our goldfields back into the glory days, and the possibility that in light of the world financial turmoil, they would connect some potential investors or financing sources together to get GBM over the hump.
While voluntary Administration is always on the "possible list", it may well be premature to panic over that right now.
I believe the guys are very capable of thinking outside the box. I sure hope so, as does everyone on this board.
GBM Price at posting:
3.7¢ Sentiment: None Disclosure: Held
