Red Lake Madsen Mine Ltd LRTNF

RE:2020 YE Financial Results Filed - Equity Financing Coming!

[ManicMiner001]

Looks like I called this financing a week ago after reviewing the YE Financial Results as did a few others on this Bull Board. Assuming the deal is upsized to C$11.6M this will give the PGM management the opportunity to access an additional C$5.8M of Sprott Debt Funding. The warrants are also available for exericising so this should give the Company plenty of liquidity with more dilution; while they work through the ramp up teething problems. If we see the warrants being exercised I'd see this is a que that operations are not improving at the Mine, especially the grade, dore production and Free Cash Flow generation.

I see a few investors on this Bull Board picked up on the 8% premium (C$1.52 offer price vs C$1.41 yesterday's closing price). This is actually quite low for a FT deal and is an indication that there is still percieved risk with this Project. On the back end the shares are probbaly being offered to various institutions or high net worth individuals (e.g. Eric Sprott) at between C$1.10 - C$1.20. Although the monies help with liquidity it is important to understand that these monies can only be used for certain "Exploration Activities" meaning that mining, capital equipment purchases and G&A are all excluded. The CRA are usually pretty strict on this, probably more so given the finances of the entire country at in the ditch.

I still believe this can be a successful Mine and generate significant returns for shareholders. However, time is running out for this management team and they need to deliver in the second quarter. Otherwise Eric Sprott and Sprott Lending will be stepping in to take control of this Company. 

Manic Miner "Digging Deeper and Unearthing The Facts."