RE: RE: Still Broke When you're a junior explorer and you have no cash, and no revenue on the immediate horizon, you are dead broke. AXI is trying to spin-out a few of their subsidiary properties to bring in some cash. In today's investment environment, with many good companies at PDAC unable to procure new financing, I doubt a spin-out of Arctic properties will be very attractive.
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Not only is AXI dead broke, they are now in debt. The convertible debenture is $5 million in debt, first of all, with an option to convert to AXI shares. There's no guarantee XinXing will choose to convert the debt to AXI shares. If XinXing were 100% confident in the Roche Bay project wouldn't they have just done a $5 million private placement? Or signed the darn JV agreement?
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So, AXI now owes XinXing $5 million, with no obvious way to repay them. What is this $5 million in debt secured by?