I found the news to be quite positive, as mentioned by other Kores is a state-owned resource company with a large backing. Good to see the support and re-negotiation of the loan with US Exim. Overall, I think the news was good for us. There was no further mention of cash burn rates or when we may run out of cash etc., SRK delayed is no big deal it really does not matter at this point as obviously some of the involved have a fair idea of what is coming. Also, the delay could be strategic to block other parties.


Funding based on my knowledge:

$90mm Stage I funding issued by the Consortium in exchane for 21%, totallying 51% interest (this is final)

$104mm additional funding throughout October and November by Kores specifically,

Another $40mm loan just announced, also from Kores specifically.



Korean Consortium (includes Kores) - $90mm advanced (STAGE I - Completed)

Kores Corp - $144mm advanced (STAGE II - No Word on status or terms of this part of the deal)

Total injection = $234mm


My opinion on the reason the stock is flat, is because it's December (typically a flat/decline month) in stocks that have significant losses. Tax loss selling could worsen this. Also, because there was no news on Stage II, and what is happeneing with Baja's percentage ownership. Most of the big money would have already concluded that Baja was not going bankrupt weeks ago, but there is too much smoke and mirrors...i mean uncertainty... with this latter part of the deal that everyone is sitting and waiting. Some are concluding we will be dropped to 10%, others believe it will be amended or otherwise so we retain 49%.


See you all in January.