I am pleased that CLL was able to secure the financing.
It was well known that they would need additional capital to develop Algar, expand the refinery and participate in a pipeline.
The only two sources were issue additional shares, at an artificailly restrained price or secure lended capital.
Most of the oil sands juniors have failed to certify whatever reserves they may have by sufficient drilling.
A resource estimate is not adequate to collateralize a bank loan, in spite of the shares snapped up by an unsophisticated market.
Because CLL went the distance and had GLJ certify their bituman as RESERVES, they are able to take this asset to the bank to secure debt financing.
This bodes well in my opiniuon because we know that the announced RESERVES apply to only a small portion of the Great Divide property.
They are able to secure debt financing on the portions under development without inviting diluting equity participation in the property as a whole.
This is significant sincee we already know from GLJ that the pods drilled so far will pay out for ever 25 years.
The debt will be retired in a fraction of that time allowing the property to come into production to fund its own future development.
