The issue now with Perkoa is the raising of the debt to dig it...

The issue now with Perkoa is the raising of the debt to dig it up.

The grade of the mine is all important and the whole reason it hasnt been dug up previously is that there was no real need to as concentrate wasnt scarce.We now have a totally different scenario whereby smelters have actually been closed because there is not enough zinc concentrate being produced.This has resulted from a long term lack of investment in zinc mining/exploration and commitment to larger projects.

This in effect puts Aim in a strong position as the concentrate demand should be present for a while yet which should keep zinc prices relatively strong(compared to prior to the boom)which will allow quick payback of the debt.Being such a high grade mine should keep margins good enough to produce decent profit for years.

My basic concern is how will the market peceive a debt/capital raising if zinc was to continue down,an unlikely scenario perhaps,but a possibility all the same and I think this is how the market sees it too atm.

As soon as Aim gives us an offtake with a reasonable price for the concentate and the debt I will be a hell of a lot more confident about a TSX raising and imho I think thats how the market will read it to.As long as the market is not shown this it will doubt the viability of the project on the basis of the lack of ability to raise the CAPEX to get Perkoa to start-up and this is why we have a lack of strength in buying atm.

If zinc fundamentals show a defined positive direction then buyers will more than likely come back as well but as yet we dont have that direction nor do we have an offtake or debt agreement.I sincerely hope MF is close to the mark with his offtake/debt comments because the sp will need them sooner rathet than later.

d.