GREY:ETPHF - Post by User
Post by
madmax240kphon Dec 20, 2011 9:19pm
395 Views
Post# 19340302
Financing Proof
Financing ProofThis report states approximate funds remaining and future plans to get it going
to production.
Financing
As discussed, we believe EPC will need to raise a modest amount of equity in the near term to advance exploration and again later next year to fund a feasibility study. The estimated US$800 million capex requirement will need to be financed via a combination of debt and equity. Normally a junior potash company will aim to achieve a debt to equity ratio of 60/40 implying $480 million of debt and $320 million of equity. The company will most certainly pursue several financing alternatives including garnering interest from a strategic investor possibly including an off-take agreement. The company currently has
approximately C$4 million in cash and could add a further $22 million assuming the exercise of outstanding options and warrants (most of which are now out of the money)