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They're out in force today!
The last loan from the Extremadura bank was a lot less than 10%.
"The €3m loan has an interest rate of 1.75% per annum for a term of 15 months, providing an efficient low-cost source of funds to W Resources."
If anything, the risk profile is reduced since then, since we're now commissioned and in production.
DB.
The warrants are risk free for the investors. If they see good progress and company making performance from La Parilla, they may be willing.
However, I believe the 0.5p price has now gone and debt and equity will be the option. £1m debt @ 10% interest, £1m equity raise at 0.25p = 400m shares (approx 6.5% dilution).
I think 0.25p is very/too low, but easy maths.
BB
From 16th Sept RNS:
The Company will need to add additional funding over the next two months prior to the expected receipt of grant funding and start of commercial production in order to maintain the pace at which the La Parrilla mine is being developed and has received interest from potential debt and Spanish equity providers.
'A third Spanish investor has indicated interest to invest €2m on the same terms as this placement but the investment is subject to funds approval which they will target to achieve within the next month.'
I guess the third investor is probably out of the picture now. Therefore, that means the 0.5p equity pricing is also out of the window, except for MM's pledge, maybe £10-20k.
So what will the equity raise be priced at, I can't see it at a premium to todays price. Also the stated 2 months is up tomorrow. Maybe the grant will save us.
The odds on an after hours Friday RNS has just dropped considerably.
I'm looking for a final top up, but nervous of the dilution and option to buy cheaper.
BB
Mogwhy...why? It is much like the ramblings of others who said SP changing news before the AGM. The coin has two sides. What if the funding arrangement is not going to plan, delayed or in need of a rethink? He would delay it, would he not? The 2 months ends tomorrow, and MM was very clear that the money was needed within two months.
From the last RNS it looks like it's going to be a mixture of debt and equity.
We got a good deal from the local bank last time, so hopefully more of the same which will minimise the dilution.
We'll almost certainly find out before next Wednesdays investor event.
With respect Bluebelly, I think they will have the same deal as the other local investors, kind of like the RNS said.
I can't believe the spanish investors will outlay £2m without getting some major bonus in the form of warrants.
They will want to see production, production improving and expectation of a good return on their investment.
£2m at 0.5p = 400m shares.
200m warrants at 0.75p
At 1p they get £4m back and exercise their warrants, 200m =£1.5m outlay. £2.5m banked and holding £2m in value.
600m shares would dilute us by <10% and put £3.5m working capital in the accounts.
BB