Hi Ubid and all,I too agree that there is general concern over...

Hi Ubid and all,

I too agree that there is general concern over what is happening/ appears to be happening.

For me it appears that there have been several recent announcements that make EVG look a bit like a headless chook:

1) Venezuela project cancellation and immediate 'refocus' on Peru
2) Introduction of new investor and then their withdrawal
3) Need to now buy out 7.5% JV interest partner to get new investor back on board (what happens if they then demand another change before putting money in?)
4) Issue of $3.6m to drill holes in Ecuador that, according to latest QR, has been spent on LL
5) Issue of ANOTHER 50m shares at 8c to keep cash coming in to pay for LL development

The main one for me, however, is the apparent delay in the preparation and execution of the Mac Bank documentation. Without their $37.5m the project will stall.

As at 31st Dec 09 EVG was down to one month cash burn for their LL project. This will have been spent by now and without BJ's intention to stump up for 32m shares at 8c the LL project will come to a grinding halt.

Are Mac Bank now holding EVG to ransom? IMO it would be their modus operandi despite their 6-7% holding.

BJ is working hard to navigate these tricky waters but for investors there comes a point where it all becomes too complicated and messy and they move on. Fair enough.

However, in assessing downside risk the current SP must be within 20-30% of the maximum downside (ie winding up of company and selling of LL project).

EVG is debt free (thanks to delays from Mac Bank!) and the LL project is well advanced. Thus there is a real, salable asset.

Whilst I have been selling some head shares in the 7-9c range (as I am overweighted due to buying to get the 0.1c Options) I will be buying back if they fall into the 5-6c range as I think the downside will have largely been factored in.

Depth is looking terrible though. For better or worse we have to ride this out at present as there are NO buyers currently :)

Cheers
John