stage 2 financing

  1. NT
    1,708 Posts.
    True Nuts!

    However let's look at the scenario with information provided by yourself, Flats and others.

    All AVL holders now await financing arrangements for stage 2. This should change the status of AVL and push the share price up 3-5 cents providing "cap" is lifted or taken out.

    BT has the option of bargaining with the Rand? Bank with the benefit of hind-sight (ie Stage 1 loan) - aparently held to ransom to some extent due to a dearth of would be financiers.

    If no satisfaction can be achieved Bill can organise a share issue. (a 1for 5 split or rights issue would perhaps be too protracted.)
    This is an option AVL management is not keen on as management too have large holdings subject to dilutionary affect of any share issue.

    Otherwise AVL could take the long way around and build up capital from present mining and processing. The mine is income positive - despite what detractors try to suggest.
    This is not a very likely or desirable outcome. The wait has been too long already!

    My guess is that BT has been working on the loan and endeavouring to obtain the best terms he can.
    As such the discussion and decision making must be virtually at an end - so formalities can be carried out without protracted process.

    One assumes World Bank approval - or whatever - is not likely to slow the process. Political and economic stability in the Congo is improving - the original loan for stage 1 would, one assumes, have gone through the same process.

    So my GUESS?

    Finance for stage 2 will be obtained and announced soon. How soon? That is what we would all like to know!

    The loan conditions will probably cause concern and the odd individual will criticise BT for giving too much to the financier. He will no doubt accept and put up with that.

    Then Stage 2. will be well on the way.

    And the present state of play?

    The calm before the storm (take off) I suspect and hope.


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