RE:Higginsville/financingarh0070, just a few comments to fill in a bit more details:
- They have issued 56.9 Ms to Westgold to satisfy the share paortion. 56.9Ms is the total including the A$4M in shares (6.9Ms) which is non-refundable and was paid at the beginning of the deal to lock in the exclusive DD that RNX has been carried out to be sure about the deal (mill inspection, etc.) So, as of today the new OS = 500.88Ms +56.0Ms =
557Ms (not 600Ms). Westgold has 10.2%OS (#1 major shareholder) and ES becomes 47.9/557 = 8.6%OS (#2 major shareholder). Just watch Eric, he will not be #2 for long.
- They have secures a LOC of C$35M at 10% interest for a year with a 6 month extension. Principal payment is not required. But the there is no detail about if they want to they can pay down anytime. But, 12 months + another 6 months are a short period, hence there is no need to worry about repayment. If you have more cash then just keep it there for several months. They have approximately C$10M from the BD, so only about $15M would be required (noting that I just ignore the 5% difference between C and A dollars) to satisfy the cash payment, i.e. they only need to draw $15M from the LOC, leaving $20M there for drawing down if/when needed. Currently, the have the following potential income: sale of the Golden Rose and some other small pieces (~$4M), King Henry plus others ($5M), GTV, or Gas Tank Vein (1000oz = $2M), 80,000 tonne stockpile which presumably has been brought to HGO ($5 net profit by end of June), ramped up operaton at BH (10,000 oz , net profit ~$5M for Q3, 2019), extension of GTV, with some luck more specimens, etc...A napkin estimate would put the GTV extension, over 29 m toward level 14 where FDV is could yiel another 30,000 oz x C1000/oz profit = $30M...if lady luck knocks on the door.
Total potential cash: $21M (please check my math), excluding the GTV extension.
GH11
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arh0070 wrote: Details provided today .Another 50 million plus shares issued ,borrowed 35million at 10% for a year including 10 million more to fund operations .It indeed was fortunate that last week they found more gold (value)worth 2 million which pushed the value of the company up about 60 million.Pretty obvious the share price rise will be a short term spike .Probably offered an oppurtunity for someone to sell 10 million shares into the market for a better price .Selby is to be admired for his ability to obtain financing to develope the beta hunt .
So now we are left with a company with 35 million in debt due in a year ,600million shares or so outstanding and a 7% royalty on gold production .They are going to have to find a lot of high grade gold to keep the hamster running around the wheel faster and faster .