...and should they want more time for DD then we will receive another $50k. If not then they confirm they are going ahead with the purchase and we will receive $2.25mil within a month. However, they may change their minds entirely, then we're back to square one and we have a small gold mine that costs us nothing but gives us nothing and we will need to raise further funds to survive in the next few months.
So, if all goes to plan and we receive £1.4mil in the next month or so, then hopefuly we won't need any further fund raising for 6 months. Ivory Coast is covered for the foreseeable by Daniel Sklan. I see that as a positive. If YA are out then we have no downward pressure, and if IC proves worthy then this SP should start to edge up. Should we need to raise funds for IC after DS's £100k is gone, then dilution shouldn't be quite so painful, and shouldn't be neceesary until at least the new year. In that time, Kenya news may be positive too. We also have Greenland but I don't hold any hope there for a good few years now, but fingers crossed for a surprise. This might be the turning of the worm.
I personally think the term "ability to complete a deal" pretty much assumes that the deal, whatever it is, is a profitable one (unless it is a planned loss-leader that will prove a successful investment for future deals).
In terms of the "much needed cash" you referred to, the initial $2.5m equates to £1.4m at current rates (less the 7% commission). When you consider that the company has already raised more than that (£1.459m I think) this year in the first 6 months via placings, issue of equity and CLNs, and mostly for debts and working capital, then that £1.4m doesn't really look much at all imo. Still, you could look at it as 6 months of funding that shouldn't require any dilution in that time period. There would also be an additional $1.5m / £876K to come (again less 7% commission) any time in the year following deal completion. Anything is better than nothing I guess.
What I can't understand is why we are continuing to "invest" profits from the mine back into it if we are resigned to selling it. To me this is like putting your clapped out old car on the market but every week spending more and more money on it anyway, or like putting your house up for sale and then continuing to spend money on it to upgrade the central heating, the kitchen and so on instead of spending that precious money on the new house that you will buy once you have completed the sale. It seems madness to me, but then wthdik?
I know many of us are split on this but I'm still unsure whether to view a sale at the terms on offer as a positive or a negative or indeed neutral.
On the one hand it would confirm AB's ability to actually complete a deal and would bring us in some much needed cash at a time when most juniors are struggling, but then on the other hand it would confirm El Limon as a massive failure and the cash we would receive would certainly not justify all the hype of recent months surrounding Gold price, exciting new levels and untapped resource etc.
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