oiramoric

Of course you are correct in what you say!

RML's cash burn rate (aside from expected increase in Receivables, which doesn't help their cash position because those take time to turn to cash) is close to USD 1.2 million per month. By my calculations I put their current cash position at just below USD 10 million. RML have legal/accounting/professional service fees due for their GRZ bid as well as their day to day routine expenses in Venezuela. Add-in some contingency for an out of court settlement for GRZ costs then I think you get a better idea how dire their position is. The bid for GRZ has and always has been about GRZ's cash first and foremost.

15 % if allotted, of approx. 391 million weighted av. no of RML shares gives approx. 58.65 million. Add in a closing average price over the last 30 days and a discount to make interesting for Can. Cap and you get a figure of CAD .63/1.25 average fx = USD .50/RML share, less closing costs = approx. USD 29 million

USD 29 million at their current burn rate should sustain them for a while however such an amount doesn't come close to what GRZ shareholders would need if combined with yet more dilution (which of course will not happen)

Can. Cap must have done their DD regarding RML to up the investment so perhaps their buying of KRY shares may have some merit? An improved cash position (albeit through dilution) combined with EDV's recent USD 93.7 mill. is interesting timing. Now that the KRY bondholder(s) court hearing has been put back from Feb.23 to April/May I wonder if RML/EDV is laying the groundwork for a deal with KRY? I wonder if EDV even hold some KRY bonds (hiding behind Compuserve and pressing the issue to perhaps force KRY's hand knowing that the Vennies are close to giving the permit?)

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