Avia said yesterday morning that it would seek additional funding of about pounds 1m as a working capital reserve
and to fund growth.
Proceeds will be used to complete two potential extraction processes on the Pisgah, California property and the Wikieup, Arizona property, to conduct a drill programme for any precious metals and/or other base metals on the Wikieup, Arizona property, to engage a qualified and comprehensive US and Canadian investor relations and shareholder communications group and strategic working capital reserve
the owners) any cash remaining after paying operating expenses and debts, plus funding a working capital reserve
Lenders particularly look for several items frequently overlooked by the borrower, among them a comprehensive working capital reserve
19] By shortening the operating cycle, the liquid funds needed for a working capital reserve
are, of course, reduced.
Although marketable securities are classic investment assets, amounts held in a working capital reserve
are held for use, or to produce funds for use, in the business at an early time.
Budget office director Kelly Strueby said, any operating surplus would typically be put into the region's general capital reserve, with smaller amounts going to the social housing reserve fund and working capital reserve
fund, if the expectations prove true.
Proceeds from the offering will be used, but not be limited to, to complete the work-up of the two potential extraction processes on the Pisgah, California property and the Wikieup, Arizona property, conduct a drill programme for the potential tonnages and subsequently any precious metals and/or other base metals on the Wikieup, Arizona property, conduct a comprehensive research and development programme for any rare earth elements on the Owl Canyon, California property, engage a qualified US and Canadian investor relations and shareholder communications group and for strategic working capital reserve
If initial fill-up projections were overly optimistic, the working capital reserve
would immediately start dwindling.
The financial policy recommends that, within the operation and maintenance fund, a working capital reserve
equivalent to 90 days of operation and maintenance expense be maintained.
Attachment C allows a working capital reserve
of up to 60 days' cash expenses for normal operating purposes.