Barkerville Gold Mns Ltd BGMZF

Who ever posted the cash positions of the majors

[justlikethat]

Is oversimplifying the finances of those companies that were on the list. At this point in time, cash is king. Having liquidity in this environment is more than important. Companies need it to survive. There are also covenants that require current ratios to be maintained at certain levels. Secondly, equity capital is very expensive making this option less realistic. Debt capital markets are wide open. Sub-par credits are getting long term money for 600bps or less. Levering the balance sheet makes much more sense under the current climate.

So, I'm not even going to speculate on a "buy out." I want to see what we have in hand before I start planning a vacation. With that said, a financing will not likely be a cash transaction but more likely an debt/equity deal.