Apex may be forced to sell P&P stakeThis is from an Apex news release dated 12/8/2008
"Notwithstanding this new line of credit, the company believes that it is likely to require a significant restructuring of its operations or indebtedness based on the foregoing factors and its projections with respect to the San Cristóbal mine. The company has engaged Jefferies & Company, Inc. as its financial advisor to assist it in reviewing strategic and financial alternatives, which could include new debt or equity financing, a sale of additional interests in San Cristóbal or in one or more of the company's exploration properties or a restructuring, refinancing or amendment of the Facility or the related metal derivative positions."
As a matter of fact it will be quite difficult for Apex to survive in the current mining environment and with no re-structuring of the debt facilities. This could be a good opportunity for APE to get a new and financially strong partner for P&P. I bet that Apex is only waiting for the release of the resource estimate to proceed with the sale of the P&P stake...
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