a little more info for why the financing.. for you 5erThe Nebari credit facility. The quarterly report added a few more details that I have not seen in the past.
At Dec.31 they were in the hole a couple of millions when you accounted for debt that had to be repaid.
But then they borrowed about $21 million CDN. That was to last them through the year.
Well, as of March 31 the amount they had left to spend was down to about $10 million.
Thankfully they brought in about $7 million during the quarter from Pointe Rousse.
There are conditions on the credit faciliity. Including them having the whole company as collateral.
They have to maintain a cash balance of at least $2 million dollars.
They had about $10 million March 31, so likely $7-8 million now. But they can't spend that whole $7-8 million. They have to keep a balance of miniimum $2 million. So they have about $5-6 million to spend. That is it.
Interestingly, though they have some credit lines with RBC, they are not allowed to draw on those because of the agreement with Nebari. Those little bit of funds available they are not allowed to draw on.
And their bills have to be paid on time.
So they have probably $5 million that they can spend. A few months worth of cash.
They announced in March that they initiated drilling on the western extension. Initiated was the wrong word to use. Initiated means they began. Instead they should have said they initiated the process of preparing and making plans to drill. Not that they started drilling.
They must be near finished I guess? It's likely the $800 000 plus that they have to spend by June because of the flow through shares. (I don't know if that's exactly accuratae)/
Basically they have to raise money.... otherwise they default on the terms of the credit facility by mid summer.
We don't know the terms where they can get the other $5 million. Likely has to do with a certain shareprice... permits, increasing reserves etc.
So 5er, instead of telling everyone how I am mentally ill and can't put a coherent sentence together, why don't you discuss my points?
I could counter argue every single one of them. Can you. Or do you just like to put people down and not discuss the stock?