Its a long long long way away from "resource size" to "7 years...

Its a long long long way away from "resource size" to "7 years of production"

Yes they are raising the money to pay down some of the trade creditors but if the share price keeps dropping then when it is time to pay the note holders their ~$13m in February, how many additional shares will need to be issued at say .003 or .002?

Assuming that the bondholders are satisfied by issue of additional shares (not a foregone conclusion) then the outstanding capital could be 3 times what it is today at ~7bln shares and it will still owe plenty.

I can't see how a consolidation of capital could be good for the share price. In many cases where there has been a consolidation the shares rarely trade anywhere near what they should trade at.