RE: Quads13 Aug 2022 17:58
Good afternoon StukeyBlue.
Let me start by saying raising cash for regional drill and raising cash for Cascabels construction are two different propositions.
To raise cash for the regionals for drilling can only come from issuing more shares at this moment, but that's what all explorers do.
Cascabel and Alpala are a different prospect.
We have done the hard work, the PEA and the PFS have defined what we have, completing the DFS puts us onto the last leg of the race.
This will be the BFS ( banking feasibility study )
Once this is done then as Daryl says this opens up options on financing, as we can show what is affordable and provide a CFP ( conditional finance package ).
This could be done at the DFS ( definitive feasibility study ) stage, but I suspect we will require the BFS as this is huge.
As Daryl has said, the further we go the more options we have.
Most of my investments in the past have been in oil and gas and if you think Mining is slow, try investing in an offshore Oil or gas project. Patience is really required.
So what options will present themselves.
I can't answer that, but Solgold can and Daryl looks confident, that this can be done with minimal dilution.
However I will make a guess.
By the time we get to BFS we can go and arrange most of the finance by staged loans.
We will of course need to put in money ourselves so that under capital tier ration one, we can get decent rates of interest and the amount of money loaned to us.
So how do we do that.
Well some dilution will be required, but hopefully by the time we get their, Bonds will be issued. I word suggest 5 and 10 year terms.
Lastly we have offtake and have seen 100 million raised for 1% of offtake, however with the reduced scale of mine under the PFS this has been recalculated around 1.27% I believe. ( figure could be wrong as typing this from memory ).
Hence we may go down this path, but my preference would be to use this as a contingency, if we run into problems or delays.
This is speculation and Solgold have the figures and I believe a good idea of what the DFS and BFS will look like, as the PFS gives us the costs.
Thank you for an engaging question, I hope you now understand my position better.
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