Post by
templetooth2 on Feb 14, 2020 8:54pm
PDAC deal timeline
If Tad's timeline of a deal comes to pass, that's wonderful. I'll welcome it gladly. I'm not expecting a big financial reward - rather, victory will be measured in keeping one's capital losses to a manageable number.
If no deal is forthcoming by St Patrick's Day, we have to prepare for the Third Annual Sealift Financing. This is usually in the vicinity of $50 million. This year, we should expect something larger as our current lender knows we cannot make a principal payment and consequently needs to be replaced by fresh gullible blood. I could be overestimating but I think we need about $30 million for consumables, not counting fuel. Add on maybe $45 million so as to bring the debt down to around an even $100 million, a nice round number for a new lender to finance.
So, $75 million plus 6% commission is about $80 million Cdn. headline number. I personally think that it would be a stretch to raise that kind of money at a price over $2 per share, but I've been beaten into submission here and could be too pessimistic. Nevertheless, I'll stick to my estimate of another 40 million share dilution in the absence of a deal until someone gives me another plausible scenario.
On the Ozzie front, I stumbled across a comment on Evolution Mining. I expect that most North American investors/speculators have never heard of Evolution, yet it has a market cap of close to $6.8 Billion Aus., enterprise value $7.1 Billion. I'm hoping somebody down under soon suffers heat stroke and begins to think it would be cool, very cool, to acquire some assets on an Arctic beach.