The question then becomes at what price does it convert and how much would YTC have to fund under those terms.
I think a combination of a convertible loan at a share price of .50 on say $30mm combined with straight debt on $70mm would be ideal.
Its clear the company is going to need roughly $100mm..... not sure if offtake on the Pb/Zinc is sufficient to get us those kind of terms but if it isnt then I agree we should forward sell the gold and lock in financing on that knowing that getting to revenue generation/production is key. Once we get to that point then we have options when it comes to growing the company. Gold is not the big picture.
If we cant get those kind of terms then maybe its best to shelve the project until market conditions improve....Instead of giving away value at these prices we could take the cash that we have, hire PEX as consultants on where we should be drilling and add value the way they are right now....which is by finding the copper that we all know is below us.
YTC Price at posting:
23.5¢ Sentiment: None Disclosure: Held
