GREY:RNSFF - Post by User
Post by
Boots333on Jan 15, 2020 3:05pm
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Post# 30556949
Financing for ROE
Financing for ROE It was Eric Sprott who put up the latest financing. He is not concerned about the current share price,( Obviously) to put up U.S $1.0 million at a 135% premium over the current share price is pretty extra-ordinary. The big money people involved are really focused on the big picture and fully understand that this deal will get done. Sport put up a large chunk of money back in 2015 when ROE was just getting started with this whole project.
Management does not believe financing will be an issue once the new contract is entered into. There will be several levels of financing required. There will be the highest risk money as they prove up the extent of the resource. This will be money for the first 5-6 wells. The development money will be lower risk. In fact, the development will pretty much be self financing once they get through the first 6-8 wells. There is also money required for gas gathering systems and for infrastructure. ROE has talked to different financial groups, both inside and outside of Mexico,and they are of the view the money needed will be available.