RE:RE:RE:C$45 Million Bought Deal Financing
The question was asked by rvirdi6394 if this was "enough or do they need more financing" and my initial reaction was that this was not going to be enough but decided to look at what the company had put out in December and from the numbers, they will be close.
Based on the December presentation, they set out the future expenditures as follows:
(Slide 12)
Q1 $152m
Q2 $103m
Q3 $101m
Q4 $ 68m
They also state on Slide 13 that the available cash resources estimated Dec 31, 2021 were $290m. With the $45m raised this month, the available cash resources move up to $335m which should comfortable see them through to late Q3. If they are able to generate north of $125m in cash flow this year they may actually make it.
One thing that does concern me somewhat is a caption in the news release for the $45m raise that said,
"The Company intends to use the net proceeds of the offering for continued exploration and development activities at the Company’s Magino project and for general corporate purposes."
Hope that statement doesn't come back to bite the company in the behind because flow through money cannot be used for general corporate purposes.
Again, I'm shocked that the numbers say that they may be able to make it all the way to first gold pour with just this capital raise, but if they do, congrats to them. However, the numbers said they weren't going to need additional financing in early 2021 and here we are now.
For now it is a wait and see. Hoping no additional bombshell falls on us during the earnings release and conference call (if they hold one).
GLTA