OTCQX:SREMF - Post by User
Comment by
Qbiton May 03, 2012 10:18am
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Post# 19865877
RE: RE: Financing Update
RE: RE: Financing Update As I said before, it was never implied that financing was complete. Taken from the feb 13 2012 news release:
The C$75-million debt financing, C$60 million of which has been underwritten by Scotiabank as Mandated Lead Arranger, with the remaining C$15-million to be provided by Cat Financial, will be supported by a partial financial guarantee from Investissement Québec, a Québec government agency established to foster economic development. The debt facility will be secured by the assets of the Québec Lithium Project and contains normal commercial terms including a fee for the Investissement Québec guarantee. The facility is credit-approved subject to standard project financing conditions, including permitting requirements, legal documentation and completion of the remaining final project funding requirement of approximately C$25 million. Initial drawdown of the debt facility is expected in the second quarter of 2012.
So anyone who did his research correctly should not be surprised that they need an extra 25 mill to fund the project. That is why I was surprised by MGB's claim that the financing is for something else than the "basic" project as it stands now. But IMHO everything is still going according to plan. My hope now is that they planned this new financing well and will be announcing a couple of good NRs before they issue the new shares to try and drive the value up a bit. Anyways that's how I see it.