GREY:ADEXF - Post by User
Comment by
greenandgoldon Sep 22, 2011 7:13am
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Post# 19070250
RE: RE: From AXI's May 30, 2001 Management Informa
RE: RE: From AXI's May 30, 2001 Management InformaI believe right now AXI is paying for the costs of the DFS as they roll in, while also invoicing XinXing, to keep them in the loop. AXI has a substantial cash reserve ($7.5 million) which is enough to keep the DFS process moving. I believe AXI has scaled down some of the larger expenses related to the DFS, especially this summer's previously planned 15,000 meter drill campaign, which has been reduced.
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Could AXI pay for a scaled down version of the feasibility study with their cash on hand? Maybe, but it would be risky.
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I've been wondering about XinXing's behavior. Why have they been letting "partner" twist in the wind? Everyone knows the 2011 drilling season, and the feasibility study, is very important to this project's future. Either sign the deal and give the $20 million to AXI so it can take full advantage of development in summer 2011 or scotch the deal and let AXI find another partner. If XinXing does indeed want to build the mine at Roche Bay wasting most of the summer of 2011 makes no sense.