RE:RE:Capital Raisetherunner wrote: I thought the news release of August 2nd was very clear on this:
- The receipt of >A$15m in new equity is the final condition precedent in order for the Company to drawdown on the US$75.1 million debt package arranged with the German state bank KfW IPEX. The loan has been agreed on compelling terms for Almonty equity holders with all-in costs expected to be circa 2 – 3% per annum. Almonty is now fully funded for construction of Sangdong.
Capital Raise Looks like they are looking to raise additional money. The intended $25 mil AUD raise on the ASX only ended up being the guaranteed $15 mil. Not sure if the Sangdong build-out is going over the original budget or what but here we are. . .
From MD&A dates August 16:
The Company believes that, based on the current price of APT and its forecast production schedule for fiscal 2021, it has the ability to generate sufficient cash flow to meet its current obligations at its producing mine. The Company will, however, need to raise additional capital to complete the development and build-out of the Sangdong Mine. The current price of APT has reached levels where it is sufficient to cover the Company’s cash operating costs on existing production volumes. Should the Company no longer be able to produce tungsten concentrate in sufficient quantity, then the Company may not be able to meet its current and long-term obligations. Outside of abiding by (i) Spanish law requirements on minimum capital adequacy at Valtreixal Resources Spain SL and Daytal Resources Spain SL, (ii) Korean law requirements on minimum capital adequacy at Almonty Korea Tungsten, and (iii) Portuguese law requirements on minimum capital adequacy at Beralt Tin and Wolfram (Portugal) SA, there is no legal restriction on Almonty’s ability to repatriate capital from its subsidiaries.
Those don't necessarely have to be contradicting statements, they could both be true.
1. The $15 mil was enough to meet the final CP for drawdown of the loan as per Aug 2 NR
2. They do need additional money to build-out the Sangdong mine as per Aug 16 MD&A
I have no insight into anything, I'm just a schmuck here trying to ride on Lewis Black & Co's coattails.
One thing I've noticed is that a tonne of money over at least the last year has had to be repeatedly raised just to deal with the costs associated with trying to get the KfW loan closed. This has had to be in addition to the equity portion of the financing for Sangdong and has been a ridicolous amount
whois