mm3, you may be right - from ENTITLEMENT ISSUE PROSPECTUS
Going concern risk and creditor risk: The Directors believe that the Company will require additional funding in the short term to adequately meet the Company’s existing commitments to creditors and short term working capital requirements, even if the Offer is completed successfully. Further funding will be required for exploration to expand resources and reserves, making debt repayments, capital expenditure and for working capital requirements to improve production and operating costs and other working capital needs of the Company. In the event that the further funding is not obtained successfully in the short term and even if the Offer is completed successfully, the Company may not be able to continue as a going concern. The Company has negotiated with some creditors to enter alternative arrangements for the repayment of amounts owing and to extend the dates on which amounts are due and payable. The Company is also due to make repayments to creditors of approximately $10.5 million prior to the anticipated date of receipt of funds under the Offer. However, this amount includes a total of approximately $5.8 million which is sought to be paid to AMNL Financing Pty Ltd and other creditors with the 3527-06/810253_8 3 proceeds of the Offer and the Company is currently in discussions with AMNL Financing Pty Ltd and various other creditors to extend these dates. There is a risk that if the Company cannot extend the dates on which amounts are due and payable to creditors who are due to be repaid prior to the anticipated date of receipt of funds under the Offer and/or if the Company cannot raise additional alternative funds during the period of Offer to satisfy these creditors or if the Offer does not proceed, the Company will not be able to satisfy its outstanding creditor liabilities and the Company may not be able to continue as a going concern.
AXM Price at posting:
8.5¢ Sentiment: None Disclosure: Not Held