I have copied from the annula report the second the last paragraph involving th $US22.5M is what I am concerned about as I cant find where they have that money as assets in the annual report. If looking at other goldies take a peak at SLR or NGF I hold a swag of SLR, AAM also looks interesting.
P6 annual report
The total project cost is expected to be around US$75.0 million including capitalised interest during construction. The EnviroGold Consolidated Entity will provide US$30.0 million of equity for a 92.5% economic interest in the project and will act as Manager. Banks will provide US$45.0 million of project financing.
2.4M cash balance sheet p 20
P23 annual .
From ASX announcement The project will be financed by a US$35.0 million facility from Macquarie Bank Limited and a short term US$5.0 million loan from a Dominican Bank, which should only be required during the six month production ramp up. "The EnviroGold Group will advance a total of US$25.0 million of project equity including capitalised holding costs. Of this amount, US$22.5 million has been provided to date." Negotiations are at an advanced stage for a major Australian investment group to contribute US$7.5 million for a 20% interest in the project.
EnviroGold intends to reverse the transaction where it purchased the carried interest of a local partner, Grimston World Inc, in November 2008, so as to maintain high level commercial and government relations through a local partner in the Dominican Republic. EnviroGold’s economic interest in the project will then be 73% and Grimston World 7%.
EVG Price at posting:
8.1¢ Sentiment: None Disclosure: Held
