I think that's why the loan had to be unsecured as well. Any loan at that point in time that ranked above shareholders would have been problematic from a regulatory standpoint point.
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Even unsecured, the loan ranks ahead of shareholders. Shareholders are always last.
All very messy, but agree with earlier comment that its a storm in a tea cup. How much $$$ required to get processing, then cashflow neutral, and then to profit is what we need now - CR documents will be a good read.
Read the audit report, it is to balance date 31/3:
"I was engaged to audit the consolidated financial statements of New Talisman Gold Mines Limited(“the Company”) and its subsidiaries (“the Group”), which comprises:
• the consolidated statement of financial position as at 31 March 2024;
• the consolidated statement of comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash flows for the year then ended; and
• the notes to the consolidated financial statements including a summary of significant
accounting policies."
"I do not express an opinion on the accompanying consolidated financial statements of the Group onpages 9 to 27. Because of the significance of the matters described in the Basis for Disclaimer ofOpinion section of my report, I have not been able to obtain sufficient appropriate audit evidence toprovide a basis for an audit opinion on these financial statements".
"Basis for Disclaimer of OpinionGoing Concern
Note 1(q) on page 15 to the consolidated financial statements discloses conditions that indicate the
existence of material uncertainties relating to matters surrounding the continuing use of the going
concern assumption in the preparation of these financial statements.
Due to the significant level of uncertainty associated with forecasting the Group’s future cashflows
and in determining the likely outcome of the debt or equity capital raise to fund its operations through
to production, I was unable to obtain sufficient appropriate audit evidence to enable me to form an
opinion as to whether the use of the going concern assumption is appropriate. Consequently, I was
unable to determine whether any adjustments were necessary in respect of the consolidated
statement of financial position of the Group as at 31 March 2024, the consolidated statement of
comprehensive income or consolidated statement of changes in equity.
I consider the impact of the above matters to be material and pervasive to the consolidated financial
statements of the Group."
A decent cap raise of 5 mil will sort everything. It will enable them to buy the plant, set it up, resource consents etc and allow capital to slowly extract and cart rock from the shaft etc.
Anything much less than that amount then they run the risk of another 'going concern' trading interruption.
What's taking the paperwork so long on the CR?. Surely it was ready to go on the DOC announcement.
Purchase of processing plant was conditional on successful CR - lets get this party started!
Anyone got the time or inclination to tally up all the money put into HZN & NTL over the years, and then approximate how much physical gold it would have bought on market at market prices over the same time frame?