Check out the latest QR. The $3.6m shows as a cash inflow but it has not been 'ring fenced' for Ecuador drilling.
It has ALREADY been spent during the Quarter on LL. This is evidenced by the END cash position of EVG as at 31/12 being (from memory) $1.2m.
Regardless of delays in the Ecuadorian regulatory process to allow drilling, my point is that this money has been used to keep LL development on track.
If cash was not an issue for EVG then this $3.6m would have been ring fenced in a bank account waiting for Ecuadorian authorities to allow drilling to commence.
If the money had not been reallocated then I would suggest that the LL project would already have had to suspend operations.
This is similar to another BJ company I invested in, Austral Coal, that had to issue additional shares near the end of development as they had run into project delays and the cash had run out...
If Mac Bank can scent blood I would be concerned that EVG will be required to bend over.
I would also imagine (as you have pointed out previously) that the 14.6c entry price for the new investor is fairyland stuff now.
As a large holder I am doing myself no favours by highlighting these issues :)
Cheers John
EVG Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
