Yes it is, by extrapolating the approximate weekly spend over the past 6 months, and then applying it forward.
Do the exercise.
You'll find they have less than 3 months.
So, sometime in early June, all the money will be gone, and they will effectively be bankrupt. However, this presupposes that they continue to spend now an equal amount each week to what they have been doing over the pasts 6 months - if ?
If they accelerate the spending then it will be over sooner. If they reign it in, then they may eke out another month if lucky.
In any case, they can't last to the end of this financial year without more cash, or JV, or something like a rabbit out of a hat.
I'm tipping the administration notice will come on June 30, last day of the financial year (and that's giving a very generous timetable). The timing makes the accountant and administrator jobs easier.
It will be interesting to see what the San Luis government do, and what the creditors can claim (if anything).
San Luis will be ecstatic to get the tenements back in my opinion, and probably have local companies already lined up for them. I'm not sure what Lind Partners can claim, they will try and claim the tenements in San Luis as compensation of course, but I'm not sure legally how that will stand with the San Luis government. I don't like their chances of getting anything.
I think the drilling delay has been a deliberate ploy on the part of some officials within the San Luis government. They were never going to be granted.
Just have a look at who gets awarded them after the LRS administration.
It will probably be an Argentinian company, with directors closely linked to some in the San Luis regional government. I'll be you a thousand to one that this is whats going on. Anyway, come the time post June 30, I will do the research, just out of curiosity, and I won't be surprised at what I find, because it's basic human nature, for better or for worse.
Anyway, LRS was on a hiding to nothing with this government, who in my humble opinion, like other provincial peasant governments and councils, may prove to be as corrupt as they come.
Gw
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