RE:Cause for concern?I think they are or will be tight on cash. Greg has mentioned several times that they are funded for completion of the PEA
and for initiation of Pre-feasibility level studies so I will have to take his word on that. Thus I think it is likely the next financing will be after the PEA. I think I read somewhere in the financials that Greg and others had in the past delayed taking their high pay. Also drillers and other suppliers know they have to wait a few months here and there to get paid. Prior to the last 1 or 2 financings, there was a built up of account payables so this may happen again in a few months.
The company indemnifing those flow thru investors means company will bare any financial or tax costs incurred by those investors as a result of WG not completing the required explorations.
The financial commitments under the August 2012 cooperation and benefits agreement with Kluane First Nation are minimal. Say $200k-300k at most. Homebone wrote: First off, thank you to Eodway and everyone else for the thanks on the spreadsheet work.
I was reading through the Q2 MD&A and came across a couple things I was hoping we could discuss. The first was this:
As of June 30, 2014, and as of the date of this MD&A (August , the Company had $5.9 million and $3.8 million, respectively, in cash and cash equivalents.
The other was this one:
The Company entered into a cooperation and benefits agreement in August 2012 with Kluane First Nation in the Yukon to support Wellgreen Platinum’s exploration program and environmental studies for the development of the Wellgreen property. On June 20, 2013, the Company closed a flow-through private placement for $5.9 million, thus committing to spending this amount on exploration by December 31, 2014, of which approximately $3.1 million has been expended by June 30, 2014. The Company indemnifies the subscribers of flow-through shares from any tax consequences arising should the Company, notwithstanding its plans, fail to meet its commitments under the flow-through subscription agreements.
So the company has roughly $3.8 million and they are supposed to spend up to $2.8 million (or less because that was as of June 30th... but I don't think they've been exploring) by December 31st? Plus they need to pay Greg and the other management. And what do they mean by indemnify? That sounds like money out of their pocket...
From the latest news release they are quoted as saying:
Wellgreen Platinum is fully-funded for completion of the PEA and for initiation of Pre-feasibility level studies, which will commence with a drilling program scheduled to begin in September.
It almost seems like a guarantee that we will need more money sooner than later. I pray we raise AFTER the PEA is released but who knows.
Thoughts?
Homebone