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Karora Resources Inc T.KRR

Alternate Symbol(s):  KRRGF

Karora Resources Inc. is a Canada-based multi-asset mineral resource company. The Company’s portfolio includes the Beta Hunt Underground Mine, Higginsville Gold Operations and Lakewood Mill. It owns 100% of Beta Hunt, a gold-producing mine located approximately 600 kilometers from Perth in Kambalda, Western Australia. It owns and operates HGO, which is located approximately 75 kilometers south of the Beta Hunt Mine in Higginsville, Western Australia. HGO has a mineral gold resource and reserve and prospective land package totaling approximately 1,900 square kilometers. The operation includes a 1.6 million tons per annum (Mtpa) processing plant, 192 mining tenements, including the Aquarius, Hidden Secret, Mousehollow, Two Boys, Baloo, Pioneer, Fairplay North, Mitchell, Wills, Challenge and Mount Henry deposits. The Lakewood Gold Mill is located just outside Kalgoorlie, Western Australia and approximately 60 kilometers from the Beta Hunt Mine, has a processing capacity of 1.0 Mtpa.


TSX:KRR - Post by User

Post by Farquaron Oct 05, 2021 11:46am
380 Views
Post# 33967110

Why that 30 million$ loan has not been paid back

Why that 30 million$ loan has not been paid backThe only explanation that seems logical as to why Krr hasn't renegotiated a new credit facility and why with now close to 100 million$ cash in the bank they haven't paid that 30 million$ all off or partially off, must be because, not one bank is offering a line of credit without a gold hedge. So, if I am correct, then, Karora does not want to lose that 30 million purchasing power even if it means saving 3 million$ this year or next in interest payments. The CFO is probably advising them that , that 3 million interest payment is tax deductible anyway and so maybe they are losing only a percentage of that 3 million$ because they get it back in income tax rebates...So, in the meantime, krr management is thinking, let's keep that 30 mil and potentially use it to buy out a property or two or another junior gold or nickel company in the area or to drill like crazy..So, I believe Huet's reasoning on this matter is that eventually when they deploy this 30 million, it will be accretive to the tune of 100's of millions of dollars of shareholder value. Remember they spent only 4 million$ and got Spargos's 150,000 ounces of gold in the ground. So, let's speculate and guess how much gold in the ground krr can buy with 30 million$ or how much gold can they drill out with that money. Maybe that 30 mil equals 15 drills and maybe those drills add 1 million new ounces to their reserves. So, instead of paying the 30 mil off, they use the money to prove out a new 1 million ounces of gold .. So, now if each ounce of gold on their properties have a value of say 100$US per ounce, that 30 million$ of drilling just made them 100 million$US...So , you pay back the 30 million and save 3 million$ in interest or you spend the 30 mil and increase shareholder value by $125 million cdn...I think it's clear what the answer is.. When they do eventually get a un-hedged line of credit, then they can pay it off and then pay a much lower interest on the new loan...
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