This is my interpretation of the numbers. The C$25M (US$23M prepaid gold sales, excluding the extra US$10M that will go into the production reserve account at the beginning) plus the C$16M PP equates to C$41M, which is plenty enough to restart Lamaque.
That leaves the C$5M (with stand by guarantee from the Investor) as more than enough funds to go towards cleaning up small liabilities on the Balance Sheet before closing off the bank financing.
That then leaves the C$4M bridge financing to go almost entirely towards surface exploration at Lamaque and work on Vulcan resource modeling.
From the NR:
“Proceeds from the Flow-Through Financing will be used for surface exploration at the Lamaque property and to further delineate reserves and resources.”
“The Private Placement, when combined with the Bank Financing, will provide the Company with approximately $57 million of capital to restart the Lamaque underground gold mine project, located in Val d'Or Quebec. Furthermore, the additional $4 million from the Flow-Through Financing will allow for continued exploration on Century's extensive land position.”
They specially mentioned surface exploration at Lamaque. We know that they are drilling the Bedard Dyke (perhaps from both the surface and from within the pit). I wonder if they will also be drilling the M&I ounces located from 0 to 1,000 feet of the surface, in order to increase the near surface reserves. Off the top of my head I can’t recall how deep a standard drill (or even a deep drill) can reach from the surface.
Here is where this aggressive drilling can be a game changer during the ramp up period. If they are aggressively drilling near surface M&I ounces into reserves (in areas easily accessible for near-term mining) then we could be looking at higher production ounces in the ramp up period than previously forecasted.
1 comment:
some pessimism today, needed also
However you may see it, it is strange to dilute a company 50% ( the Scoula guys )for less then $20 million dollars, but it was strange when we was at 1 cent too so( atleast i should have bought much than, but you know, there is people without food also , so no arguments here ).. The best had been if they had gone with the debt financing i think(200M shares o/s only and really good money, wonderful. Easily payable if hedged some, if not, this will not work either), but the play behind the curtains set a halt for it. Now they must do the best for the shareholders and we must forget the past, and that is to use these 40M dollars productively. I find no excuse for extra dilution, we will have to go over 400M shares that way eventually when the warrants will/ if be exercised. So please, go for the $16M which you must, and take these 1,2M CA net pp+money from SJ and do some work at the site. You know, CMM are not needed to burn everything at once, already our CEO talks about new business deals. Ok, that's good, BUT ONLY if you have something you really believe in right know. In other cases, why dilute even more. $57M is to much and will hurt the upside( which is partially why we play this game). Also we have 62k O to deliever, so again, this deal is horrible but i must like it still, atleast if i look back how it could have been. If i was the CEO i would just add a better reserve count, do all important planning work and than we would get "i think" ~$1 dollar for this company. But with this, we will have to struggle to reach 50c and above. Sure we could go higher, but that is if we produce 150k p/y and the gold remains high. / Juha
Post a Comment