They did tell us actually. In lieu of a facility fee they drew down $3mil, even though they didn't really need to at the time. (see announcements). 12% is a pretty reasonable rate for an unsecured commercial loan.
An unsecured loan is just that, and ranks the same as any other unsecured credit unless a special agreement has been made. They can't just suddenly say they want their money back and put the company into administration. At a guess, they may want to swap their loan for more shares eventually! But that requires shareholder approval.
Allied still buying at .13, though only a relatively small amount. They have a lot invested in this company, so this is at least a sign of some confidence. Depends a bit on what happens with the gold price I guess and whether they can make sufficient profits on a lower price. They should be able to given grades at Kavanagh and that it is not very far away from current workngs. TAM hasn't dropped any further than it did before even with the recent large drop in gold price.
TAM Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
