re: Ann: Financing of Las Lagunas Gold Projec...
Yes you would have to have a lot of confidence in Management to take a 5% interest in EVG especially as regards the successful completion of the Macq Bank finance which never comes cheaply and usually has lots of strings attached. And then there's the promised upcoming share placement - at what price - could be heavy dilution. And plant completion risks - has the Albion Process ever been tried in the field? And does EVG only have 70% interest in this project? And going ahead with all those civil works before financing was assured - that puts EVG's future well being at risk and at the mercy of the current lender if the Macq Bank financing isn't completed. The current gold price only benefits those current junior producers such as DRA & BCD (both held by me)that are each producing 70,000 ozs/pa - the gold price could be $800/oz in 12 months but I'm sure Macq Bank will require heavy hedging to protect themselves. It seems there are still a lot of hurdles to clear before successful production and how many shares will be on issue then? And it would seem that current Management have been trying to get this project up & going for a long long time - obviously a pet project for them and they already have a lot of skin in the game. But I don't have that much risk appetite - I might invest nine months down the track when I know for sure how they're going as it seems like it might be an interesting one.
EVG Price at posting:
5.5¢ Sentiment: None Disclosure: Not Held
