Gabriel Resources Ltd. 2023 First Quarter Results - Seite 3
- Cash and cash equivalents at March 31, 2023 were $3.6 million.
- The Company's average monthly cash usage during Q1 2023 was $0.7 million (Q4 2022: $0.5 million), primarily reflecting the consistent level of ongoing operational cost and limited ICSID Arbitration activity quarter on quarter, with Q4 2022 offset by cash receipts from the sale of long lead-time equipment.
- At March 31, 2023, accruals for costs in respect of the ICSID Arbitration amounted to $4.5 million (Q4 2022: $4.5 million), reflecting thecontinuation of a fee agreement in respect of the deferred payment of certain ICSID Arbitration costs until an Award is issued.
Capital Resources
Private Placement
- On May 23, 2023, the Company announced the 2023 Private Placement of up to 24,782,212 Common Shares at a price of $0.26 each for gross proceeds of up to US$ 4.75 million (approximately $ 6.4 million). The closing of the 2023 Private placement is subject to certain conditions, including, but not limited to, the approval of the TSX Venture Exchange and the receipt of all other applicable approvals and is expected to complete on or about June 8, 2023. The Company will use the proceeds from the 2023 Private Placement to finance the ongoing costs of the ICSID Arbitration and for general working capital requirements.
Future Financing Requirements
- The Company believes that, taking into account (i) the assumed closure of the 2023 Private Placement; (ii) the fee agreement in respect of the deferral of payment of certain ICSID Arbitration costs and (iii) the deferral of a portion of salary and fees for certain employees and directors, it has sufficient cash to enable the Group to fund general working capital requirements together with the material estimated costs associated with the Company advancing the ICSID Arbitration through to December 2023.
- At that time, the Tribunal may not have yet reached a decision. Accordingly, post December 2023, Gabriel will require further funding in order to pursue the long-term activities required to see the ICSID Arbitration through to its conclusion (which may include, as appropriate, costs of any potential annulment proceedings and/or costs of enforcement of any Award) and for general working capital purposes, including to preserve its remaining assets, such as its exploitation license for the Roşia Montană Project ("License") and associated rights and permits.
- Notwithstanding the Company's recent and historic funding, there is a risk that sufficient additional financing may not be available to the Company on acceptable terms, or at all. There is no assurance that the Company will be successful in completing the 2023 Private Placement, in which case the Company believes that it has sufficient cash to enable the Group to fund general working capital requirements together with the material estimated costs associated with the Company advancing the ICSID Arbitration through to mid-July 2023 and it will seek alternative sources of additional financing.
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