Running on FumesCoro Mining (COP) has raised $8.0 million (US) in 2 loans for working capital from the majority owner Greenstone Limited Partners. As of the latest financials for 9/30/17, the Company owed $8.0 million (Can) in trade payables and accrued expenses. In essence, COP is running on empty. It will need more fuel to keep the engine running and to pay for the SM claims costing another $6.0 million (US).
There is still time until year-end for COP to bring in the goods. However, in the worst outcome, the Sword of Damocles will come down as the loans will mature then. Greenstone seems committed for now, but as a lender, Greenstone can put the squeeze on COP. They could petition COP into bankruptcy under the Bankruptcy and Insolvency Act (BIA) and seize the mining assets and, in effect, taking over the Company for next to nothing. COP shares would go to zero.
COP should have negotiated and agreed to print millions of more shares as they cost nothing - just paper or digital stock - instead of piling on debts that the Company wouldn't be able to repay. Greenstone has "non-dilutive" rights protection, and it would only impact deleteriously on minority shareholders whose shares would be watered down again. It is better than the worst alternative.