I initially thought so, but have reconsidered for two reasons:...

I initially thought so, but have reconsidered for two reasons:

1/ I was under the impression that they would be seeking debt financing or a mix of debt/equity for the mill refurb. Going 100% down the equity path seems a dramatic change from these other options.

2/ The numbers just don't add up. $15m - $12.5m for the mill refurb would leave them with $2.5m. Added to the $2-$2.5m (cash on hand) would leave them with $4.5-$5m for working capital. That won't be enough to sustain them while the mill refurb is being completed.

I reckon they are shoring up their finances now and will continue with their exploration activities at the same time as securing the debt financing for the mill refurb. I can't see them sitting idle once the mill refurb gets under way, so this raising makes sense (with that in mind).