RE:RE:PEAgrape562000
Correct.
As a rule, there is mixed financing through debt, capital increase and possibly stream. With a reasonable capital increase for mine financing, I have no problems, even if there is a proportionate dilution. The decisive factor is the stock price and if there are still warrants.
Stan Bharti said in November 2017 he expects a 50:50 financing with capital increase and debt at a rate of CAD 4 to 5. CAD 4 to 5 are unrealistic.
If the PEA and the BFS confirm the economic viability, I will proceed from CAD 2. For CAD 200 million - 50% capital increase would be 50-60 million additional shares. Until the construction decision and mine financing, ESM still needs CAD 10 million - this should be realistic.
This means:
- Currently 60 million shares
- Financing to construction permit CAD 10 million we say to CAD 0.50: 20 million shares
- Mine financing another 60 million shares
Total for the first phase - generous 140 million shares for a producer well in excess of 100,000 ounces of gold Eq to AISC below $ 900.
urai58