Transcript:
Calidus has undertaken the capital rise to strengthen the balance sheet, all the raises going into working capital with the addition to our working capital and our positive cash flow coming out of operations.
Not only can we fund our debt obligations to the bank, but we’ve built up sufficient reserves then to undertake our expansions for growth on our pathway to 130,000 ounces.
With this placement and SPP, slightly unusual component is one free Attaching Option for every two shares.
That’s to incentivise people to get involved with the placement to ensure its success.
But it’s also timed in such a way, with its 15 month tenor, that that money could potentially come in the middle of our underground development stage, which is obviously the most capital intensive portion of a new development.
And that ensures the success of our expansion to 130,000 ounces per annum.
The placement fully funds us through these growth phases by adding to our working capital with a positive cash flow that provides a really strong base and strong platform for the growth projects and sees us fully funded through them.
So an integral part of this placement has been our conversations with our debt providers who have been very supportive on our journey as we’ve worked through our commissioning issues.
They have confirmed recently our facility agreement, which is $6 million repayment per quarter for the remainder of this calendar year, which is well and truly funded out of the cash flows we see coming out of Warrawoona.
And we’ll continue to work with them during the course of the next 12 months on a new life of mine plan to resculpt not just the debt but the hedging to best match
our cash flows and achieve our targets of growing to 130,000 ounces per annum.
An integral part of the placement is the participation of Macmahon’s via the conversion of some invoices.
They obviously know the operations intimately, have done extensive DD and it’s wonderful to have them on board as a shareholder.
We look forward to working with them in the future as we grow our operations.
