GREY:NEVDQ - Post by User
Post by
westcoast1000on Jul 04, 2022 1:37pm
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Post# 34799633
kfw steps up
kfw steps upThis can only be excellent news.
Recall that kfw is the German international development bank, with a mandate to help secure important resources for Germany.
Given the delays and added cost here, they are going to loan Pala more capital, and Pala will put it into the company.
Pala will end up holding more shares, of course. But recall their average share cost is perhaps at $2.20 or so, about 10 times higher than the current share price. They are getting the senior loan expanded, and using it to restart the process. As another poster noted, assuming they put the efforts into contining to build the mine and start major production, we are going in the right direction. We knew last fall they may need more capital, and that has turned out to be the case. There will eventually be a major mine at this site, part of the whole copper district of West Nevada.