TSXV:AZC.P - Post by User
Post by
materialsgirlon Nov 20, 2013 4:53pm
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Post# 21924736
Red Kite
Red KiteIt is hard for us to fully understand the latest loan. It wouls seem that AZC gets $3.5m at sighing but no further money would be forthcoming as the various reports will not be filed in the short term at least.
However, if Red Kite holds back they will lose the $80m which is owned to them. If the mine does not go ahead, which is beginning to look more likely, then the debt holders such as Red Kite would have no advantage over shareholders. Zero for shareholders and zero for Red Kite.
The news is a shock for the market in general and for me too.
A new mine plan could be developed, perhaps a smaller one that would have higher costs and a smaller footprint.. If it costs $50m and 3 years the question arises "who will fund it?"
Market cap is still almost $100m so some people are optimistic.
Mat