Teranga Gold Corporation T.TGZ

QUESTION...

[Rubberband]

I'm hoping someone can answer this for me, if a company like tgz has a certain about of cash in the bank and a certain amount of bullion sitting on the sidelines then why do they need to borrow 165million especially at 8 3/4 % to fund a new mind. I'm only asking a QUESTION cause I don't know the answer.

[Stocktrackers]

Smart companies never use there own money to grow. And beside the interest is claimable.

[tsoprano24]

One reason would be to have cash in case of emergency. You don't want to go to the bank for money when you don't have any. Always nice to have some liquidity. T

[lumpy13]

The simple answer is that the need the loan to complete Wahgnion mine.  Plus, as noted by others, it's smart to have excess liquidity if things go bad.  Too many mining companies have gone under or had to dilute themselves unnecessarily when they lacked liquidity.  Finally, they have a commitment for $190m, but that doesn't mean they have to draw it all down, although hey

[kkkrrr]

i hope you are joking ...  if you really don't know the answer please stay away from mining-stocks....