MDA Jan. 14 Here are a couple of sections that I thought were worth posting. The second paragraph should put an end to nonsensical posts which claim that Bendon has ceased paying half of development costs and will thus find its ownership % reduced.
"We are awaiting on a very imminent basis an updated feasibility study on our proposed carbon-in-leach processing and an updated preliminary economic assessment (“PEA”) on a potential heap leach operation. These updates are scheduled for completion later this month, in January 2013. These will
bring up to date our earlier feasibility study of mid-2010 and our earlier heap leach PEA of May 2011. This feasibility study update will incorporate results from 340 additional drill holes on the original four deposits set out in our previous 2010 feasibility study announced in July 2010, and the mine design and reserve parameters will be updated to reflect the continued strength in the gold price since Q1 2010."
"We added a total of $2.51 million to our investment in the OJVG project during the first three fiscal quarters. Total joint venture expenditures during the first three fiscal quarters, managed by Oromin, were approximately $6.0 million of which Oromin’s share was one-half. Total project expenditures from inception in October 2004 through November 2012 have exceeded $161 million."
Sprott Credit Facility
" If funding is provided under the credit facility, the Company would have
adequate cash resources to carry out its operations in calendar 2013, including its share of expected project expenditures pursuant to the current budget proposals. However, the Company would face the need to put in place measures to repay the credit facility on or before December 31, 2013. Failure to do so would have a
material adverse effect on the Company’s ability to retain control of its investment in the OJVG Gold Project. It should also be noted, as set out in Note 12, that all amounts outstanding under the credit facility will be repayable in the event of a change of control of the Company. In all probability this would be an outlay required from any proposed acquiring party or parties. The Company currently does not have any plan in place to repay the credit facility on or before the due date; however, given that the terms of the facility were only negotiated in
late December 2012, management believes this is appropriate at the date of this report. The Company expects to have a working capital deficiency from the date of this report forward into the remainder of calendar 2013, unless and until a source of repayment of the credit facility be established. Capital Resources
The Company does not have commitments, per se, for capital expenditures as of November 30, 2012 but it expects imminently to approve a proposed budget for expenditures on the OJVG Gold Project for the calendar year 2013 of which its share would be US$3.1 million. This would effectively create a commitment to fund this amount. "