End of FebSorry if this is rambling, I'm just thinking out loud. If any of this is wrong please feel free to point it out.
As I understand it, WOF must pay IMC back the $10M by the end of the month unless WOF can provide the DD required for IMC to get on board.
With recent financings, my estimate of the total shares outstanding (i.e. not including warrants and options new or old) is ~369M for a company value of $42.47M. Which certainly seems attractive given the old $400 M NPV estimate or the more recent $535 M NPV, although I don't trust either of those numbers anymore given all the tail dragging. It would suggest we should be trading 9x or more above our current share price once the project is derisked completely (not that such a phenomenon ever exists).
On Feb 26, we are supposed to be paying back the $10M borrowed from IMC. Cash on hand as of Sept 30 was loosely $1.5M and we should have another $4.35M for a total of $5.8M minus whatever we have used since then. In other words, not enough to pay back IMC.
The terms with IMC are currently repay or give them 25% for $35M, which at today's non-diluted shares outstanding works out to them paying about 30 cents per share. There ARE a significant amount of warrants out there though that would bring that number down a bit I should add.
At 11.5 cents/share, it's not likely they are going to want to approve the DD (and we won't have all the new drilling done in time anyway). Which is not really fair since the 'risk' that is keeping us at 10 cents on the dollar is largely in the looming question of IMC in the first place, but I imagine it's come up in discussions.
So they may not be eager to sign off as it stands now, especially since more DD is apparently needed. On the other hand, forcing repayment of the loan would gain IMC nothing. Either WOF would default, and at that point IMC would be entitled to very little, or more likely, Dundee would advance the remaining funds to repay IMC and put them out of the picture. In that case, again, IMC gained 5% interest over a few years and nothing more. The $4.35 M in debt is unsecured so although Dundee could convert the recent warrants, pumping in $4.365M more into the coffers and bringing the total cash to $10.1 M or more if they exercised older warrants, I also don't think this would happen.
So with Dundee and this recent financing, IMC no longer has us over a barrel even though the deadline is soon approaching, and hopefully it's enough leverage to ensure a fair deal for Dundee and other existing shareholders and obviously IMC should know that the money they stand to make with direct access to tungsten and a share in what was once the world's largest tungsten mine is much more than the few hundred thousand dollars made on a $5M loan.
I think we will see an extension in terms and possibly the remaining $5M advanced any day now to complete the drilling program and get the mine to an operational point. Somewhere between the DD being completed and the mine ready to open, and at the current terms (assuming that NPV is at least the old estimate of $400M) IMC will have the option of collecting their interest on $15M for their trouble or taking a 25% stake in an excellent project at a dime on the dollar.
But I'm just thinking aloud...