RE:RE:Central BlockMargin321 wrote: Paul cannot easily get the money in London. If they do an equity raise at this share price they will dilute the hell out of LTH. They need 33 million and market cap of company is below 100 million. With the discount you can expect the shares would be diluted by 50%. And no one in London is going to lend a microcap resource company in their situation 33 million - even at predatory rates. And any interest they pay in London is not deductible from their taxes on Trinidad, whereas borrowing from Republic Bank makes all the interest a write off on taxes due. Like it or not, Paul has to make the deal with Republic Bank work. In order to get cash as a bridge loan (10 million) to move 2025 drilling forward and to buy the Central Block asset for 23 million.
Touchstone has deferred drilling their first hole on Cascadura B Pad which originally was schefuled for early December. in the mean time, cash has continued to build in the company's coffers. As well, there were additional debt repayments made in December that opens up additional funding from existing debt facilities. December production could be a surprise on the upside resulting in higher than expected revenues for Q4.
There is the possibility that the company doesn't need that $10 million for drilling, and only needs to get the $23 million debt funding for the Central Block, which should be able to cover quarterly debt repayments and provide additional cash flow for TXP from current production that comes with the Central Block acquisition. Republic Bank is in all likelihood quite well informed of the Central Block and Touchstone appears to be in good standing with the bank with a history of quarterly payments already.
Just speculation on my part, perhaps they do need both the $10 million and the $23 million, but would not be surprised if the company only requires financing for Central Block.
GLTA !