I'm no fanboy, but you do realise these financiers were providing debt for an entity pursuing a yet-to-be-secured tenement in the DRC that had pending government elections? It's not like its being provided for a house in Melbourne's inner-west. Financiers will price the risk accordingly. I'm no expert in debt pricing either, but I'm sure I'd be looking for similar returns if it was my cash being provided to bridge the gap (and by extension, this is what we hope for ourselves investing in these highly speculative companies).
Hopefully with the assets now de-risked relative to when the original debt was provided, we will see a more palatable cost of capital applied, but I still expect it to be steep compared to what you would see in everyday life.
VEC Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
