GREY:NEVDQ - Post by User
Post by
lumpy13on Nov 11, 2020 11:01am
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Post# 31877220
NCU NR on 3Q20
NCU NR on 3Q20All-in-all, I consider it very positive. Things are progressing and operations are picking up. Biggest concern on my side is liquidity, as noted in the paragraph below from the NR. But, if NCU can negotiate another $20-30m credit line, this should get it over the hump to reaching breakeven by mid '21. Even if expensive debt (and assume it will be), it's superior to further equity dilution. At this time, stock price is up 0.5c. The Company is in discussions with KfW-IPEX Bank, its senior lender, and has received a term sheet from a third party for an additional credit line of US$20 million to US$30 million to fund its increased cash requirements in light of the geotechnical changes discussed above. Discussions are also ongoing with other potential funding sources. Pala has confirmed it will continue to provide financial support to the Company until the end of the year, by which time the Company expects to complete a financing. The Company will provide further financing updates in the coming weeks. There can be no assurance that a financing will be completed, and in the absence of sufficient financing, the Company may not be able to continue operations.