RE:RE:RE:RE:RE:RE:OCIM are loan sharks maybe you should reread the details and maybe you can highlight the risks vs time that you seem to be so concerned about.....and how you would have structured it without a PP and dilution?
OCIM Loan Details:
On July 26, 2021the Company issued notice to OCIM to draw down funds from the US$7,500,000 silver and gold loan facility discussed and detailed in GSilver's news releases of Dec. 18, 2020 and June 1, 2021, with funds delivered to the Company on July 27, 2021.
GSilver Chairman and CEO James Anderson stated: "We would like to thank everyone at OCIM for their constant support and consistent flexibility. This funding arrangement has allowed us to access their funds at precisely the time we need them to complete our work on the El Cubo mill and continue necessary mine development in preparation for the commencement of commercial production in Q4 2021."
The OCIM loan facility has an 18-month term, including an initial six-month payment-free grace period, and is then repayable over the following 12 months by the Company delivering a set number of silver and gold ounces based on a discount to the LBMA fix price for silver and gold on July 26, 2021. GSilver estimates that the amount of silver and gold required to repay this loan facility will represent approximately 25% of the projected silver and gold to be produced by GSilver from its operations at the El Cubo mill during the 12-month repayment period of the loan. The loan is secured by, among other things, a general security agreement and pledge over the El Cubo complex in favour of OCIM.
Combined with cash on hand of approximately C$4.1m, these additional funds will give the Company a total of approximately C$13.3m to complete mine and mill development prior to initial cash flow from operations. The Company will use the proceeds from this facility to finance the continued refurbishment of the El Cubo mine and mill complex and for general corporate and working capital purposes.
GSilver CFO Lisa Dea said: "Our financial model anticipates initial concentrate sales in November of this year, as we position the Company to be Mexico's next silver and gold producer. We look forward to ramping up to planned production of 29,000 tonnes per month by mid 2022."