Lastly,They have $3 million in flow through financing that will be spent on drilling.
The last time they had a $3 million budget for drilling they planned for 4000 meters, and ended up drilling 2800 meters. short of their initial goal because of costs. And costs have gone up since 2 years ago.
So they are going to drill "up to 5000 m". If $3 million got them 2800 meters, it is unlikely that after cost increases they will be able to drill 5000 m, unless they get some more money.
As of Dec 31, they had roughly $9 million. We will get new financials then end of April or so. Perhaps that is down to $7 million now if they really did cut costs and reduce the burn rate. But it was probably expensive to put the Goldboro project for sale. But we will assume $7 million.
$3 million of that is from flow through and is reserved for what will probably be drilling.
So down to $4 million.
The Nebari credit facility requires they keep a cash balance of $2 million.
So they are now down to $2 million. That is as of March 31 and being generous. And they have a high burn rate.
What price are they going to raise money at to keep them going until the fall when they hopefully get some good drill results?