"then hopefuly we won't need any further fund raising for 6 months.".
That's a possibility but not a given. AB could choose to use cash to immediately pay off more debt and then continue the regular fund raises until all debts are paid off. Or he could use the money to invest in "something" (maybe more JMS shares) and just continue the regular fund raising. Lots of possibilities imo.
"Ivory Coast is covered for the foreseeable by Daniel Sklan."
I'm still not personally convinced that £100K will go very far but DYOR here. Material I have read suggests that there is a cost for just gaining the licenses themselves let alone any actual exploration. We were informed on 4th April that RRR had applied for 3 licenses but we have not since been informed that any have been granted. It has taken 1-2 years for some companies to be granted licenses. Things have historically been turbulent in the IC but times are changing and hopefully now things are generally better and the red tape far less than it was.
"then we're back to square one and we have a small gold mine that costs us nothing "
I would challenge that view on the basis that all profits we are making from the mine are being pumped back into it (for whatever reason) instead of providing income to RRR. An outfall of that is that we are diluted to faciltate fund raising wheras clearly a portion of that funding could come from mine profits instead. Therefore as I see it, the mine IS costing us something but others may have differing views on this.
...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?
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.