well if this is what it takes to further business intrests i did not think they would borrow money again! so be it most intresting bit of news to come out of ECR this quarter. will be very interesting to see how this will fit in to the MGA plan as Itogon and SLM will not advance drilling wise until 2015 I am not sold on Q4 2014 after the BOD said last year that Q1 drilling was going to be Q1 2014 actual start Q2 2014. Top up now on MGA news soon or wait til 2015 for further news on our other operations?
Mmm haven't we been here before.... Last experience was not a great one but this time we seem to know what they are doing with it. $1.371m for Itogon is rather similar to the $300k+500k+500k milestone payments to be made to TGR on the Itogon project but I suspect this may not be the case. Whatever happens the repayments will lead to more dilution and it really depends on the share price at the time payments need to be made as to how much dilution. If the news stream is positive then it will be minimal. YA were rumored to have been shorting ECR in the past possibly with a motive to getting more shares then hoping they would go up before they offloaded them. Didn't really work out for them as the price continued to drop and ECR made a declaration on their behalf of their holding. There was an enormous amount of dilution as the loan was paid off last year along with the loan not holders, of whom City Natural Resources was the largest .The terms of this one seem okay on the surface but only if things go well for the projects.
I would hope the main reason they wanted a loan was because things are about to pick up a pace. That would be good and there should be announcements over the coming weeks and months to the effect of something with MGA, and maybe SLM and Itogon. I'm being positive at the moment as I think this is designed to minimise dilution rather than raise money at current levels through a placement. Time will tell but I am anticipating some accelerated progress on one or more fronts as a result of this financing.
In reply to your post last night I'm 100% focused and confident in ECR and expect a sell off as we are already seeing as people aren't prepared to wait which allows long termers to accumulate.
ECR will deliver shareholder value and our operations updates are very encouraging and the BOD have shown their responsibility in keeping costs down and maximising the most out of both gold plays this is applaudable.
SLM was near term and JV-14 area could get up and running quickly but why if your confident in other areas that will give you a better return, why plan a small production outlet and spend on machinery to find out that you need bigger and better equipment because due diligence wasn't shown at the beginning.
With reference to MGA, my suspicion is the hydraulic crusher info that has been confirmed by the supplier and not denied by ECR is clearly being lined up for the post MGA news involving another mine.
Patience isn't a problem for me as others run around in this rat race with there mobile or tablet glued in their hands oblivious in this particular share all the buying signals presented.
And now we have a $10m facility to take us forward which I need to digest but looks favourable to me
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