RE: Has production started for lithium product?26 Jul 2023 22:28
Dukey, there were two tranches ÂŖ623,000 + ÂŖ50,000 + 12% interest. So according to my calcs Red Rock would owe the lenders just over ÂŖ753,000.
So just a guess by me but i would imagine if the lenders didn't want to roll over and Red Rock had no DRC money or Bin hill money then Red Rock would have to do another fundraise: they would probably have to lend from a death spiral lender, they probably charge Red Rock well over ÂŖ50,000 in fees. Then of course there is the drip drip effect of share price devastation of the death spiral lenders. So all in all that wouldn't be good.
Tradedesk, you were giving the impression the lenders could only roll over. You didn't mention that they had the option of asking to be paid back in cash immediately.
Though i do think they will roll over. Although i have no idea who Yewtree capital are. They had ÂŖ256,000 in clns. If they have no connection to Lundy they may request repayment.