Heavy Equipment... According to financials as at Dec 31 2012 they had purchased $5.6M (M as in MILLION) dollars worth of heavy equipment to start new ore mining. We were also told this equipment was delivered to the mine site at the end of December. THEN on March 1 2013 (NR) we are told again that a loader and a haul truck HAD BEEN ORDERED that will allow them to mine and add fresh ore to the pad. No mention of the heavy equipment they has supposedly already purchased FOR THE SAME PURPOSE. $560K cash down payment on this equpiment... one would think that would have gotten them through the 'boiler failure', no? At least it would have bought them another month or so TO COME UP WITH A BETTER RE-FINANCING DEAL FOR SHAREHOLDERS. Nope. Boiler fails and we have a cash crunch. AND we have yet to hear if they have actually started new ore mining! Unbelieveable.
So many ambiguities and unanswered questions.
red911
March 1 2013 NR:
"Heavy earthmoving equipment, including a loader and a haul truck, has been ordered and is scheduled to be on site by the end of March. With this additional equipment, Borealis will be able to mine and add fresh ore to the heap leach pad with the expectation of increasing recovery rates and decreasing the cash cost per ounce. "
Dec 31 2012 Financials:
Heavy equipment purchased with long-term debt $5,601,746
Page 11:
Caterpillar Financial Services Corporation
On December 6, 2012, the Company entered in to a financing arrangement with Caterpillar Financial Services Corporation (“Cat Financial”) for $5,601,746. The funding provided for the purchase of three pieces of heavy equipment: one loader and two off-highway trucks, which were delivered to the mine site at the end of December 2012. The loan is amortized over 48 months and accrues interest at a 2.9% rate. Payments consist of a down payment of $560,000 followed by four consecutive monthly payments of $298,019, with remaining monthly payments of $97,845. During the nine months ended December 31, 2012, the Company paid $546,462 in principal, leaving an aggregate balance due of $5,055,284.