Nope. You've completely lost me there. This is nothing to do with 'kick-starts' and 'virtuous circles'. Without the Standard Loan, nothing will happen. CER say a Commitment Letter was signed by the bank on 19/6/02, subject only to due diligence and other matters which were made out to be mere technicalities, since when there has been complete silence. Why? What is going on?
When they moved to AIM they got most of the new cash they wanted via a placing; the Open Offer to shareholders would have raised a maximum of another £3million before expenses - hardly make-or-break - and the reason that failed was nothing to do with comments on bulletin boards but the simple fact that it was cheaper to buy shares in the market rather than take up the Offer at 135p! You say that only lack of cash prevented you from taking up the offer - well, you're not going to get rich that way! The trick is to try to buy £1 for 50p, not the other way round!
As a CER shareholder, I'm frustrated by the lack of news and apparent progress. Conditions may be hard in these Russian mines but the corporate steps needed seem relatively clear and straightforward:
1) Obtain an interest in mines with proven reserves (Done)
2) Raise finance for investment in plant and working capital via equity investment (partly achieved) and bank finance/debt (promised but not delivered)
3) Get the necessary plant installed in the mines (talk of lend/lease deals with equipment suppliers but no news of any new plant actually being acquired or installed)
4) Dig the bl**dy stuff out of the ground and sell it into the strongest gold market for many years!
Technical difficulties aside, this is not a particularly difficult critical path analysis. So why are they struggling to get past point 2 above?
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