RE:RE:PP use Exploration spending was down 80% or so in Q2 yoy. They are showing discipline on this side given their burn rate on the ramp of the mine and working capital.
inventory alone ate $5million in Q1 and when you dig into Q2 you find it again ate another $5 million. ( balance sheet only popped $1.2 million but that is after a $3.1 million charge to cost of sales).
the more you look at that Q2 balance sheet, the more you see they had to do a raise. Unfortunately the investment guys saw this and extracted a pretty heavy price. Though the lenders are pretty expensive as well - 2% charge on each draw and interest of about 15%.
So if the exploration run rate continues for Q3 & 4 probably 25% of capital raise goes to fund this part.
nozzpack wrote: The net proceeds received by the Company from the sale of the Offered Units will be used for development and ramp up expenses at the Tuvatu Gold project located in Fiji, as well as for general corporate expenses & purposes.
Development drilling includes infill and grade control both for Resource conversion to Mineable, upgrading average resource ore grades and mining stopes .
Ie, we should end up at the Zone 500 high grade zone, with well defined Reserves probably at signifucantly higher grades....