RE: RE: RE: IFC participation could be the trigger The IFC's backing of the Passendro mine project significantly decreases the likelyhood that equity financing will be done at distressed prices, whether done out of necessity or as favor to the main shareholder AOG. Per the miningweekly article, apparently the whole $50 million in financing from the IFC is under the loan category. So with a total of $235 million in loan commitments that would leave only $40 million in equity financing needed to get to the $275 million total in the feasibility study.
Page 18 of the below slide presentation also states that the IFC typically takes between 5-15% equity position. Also they provide their services as an "honest broker", which to me means they will not be attempting to raise equity at these distressed levels, since that would be a form of theft from existing shareholders:
https://www.slideshare.net/Kfuelster/international-finance-corporation-ifc-investing-in-the-mining-sector-in-emerging-markets
If we were to assume that Axmin is given a pre-money valuation of $100 million ( or $140 million valuation post the $40 million equity raise) and the IFC takes a 10% equity position, then this would mean that the IFC would be taking up $14 million of the $40 million equity tranche. This would leave only $26 million of equity that needs to be raised from other sources. I am sure this wouldn't be much of a problem for endeavor financial to arrange, once the debt financing is already in place and with a prestigious institution like the IFC backing this project. And for good measure some of those 5 year warrants that Endeavor is famous for can also been thrown into the equity mix.
Also those fears over the 20 for 1 share consolidation and the dilution from the equity financing component are starting to look like a tempest in a teapot. Maybe all those potential investors waiting on the sidelines out of fear may need to reconsider whether to get in now on the cheap or later at much higher prices ...