Atwgold's Blog

$ 5.5 Million Toasted in 3 months

Posted in Uncategorized by atwgold on February 7, 2010

Reading the financial statements of ATW Gold is tripping the light fantastic through a minefield. In order to make any sense of the many debts, obligations, payments and accrued liabilities a body needs plenty of time and a degree in accounting. Since most people cannot make this claim we are forced to grasp the obvious and hope its reasonably correct.

The latest numbers paint a grim picture of an insolvent public company for the 3 months ended November 30, 2009. Current liabilities exceed current assets by more than $ 2.5 million, and that means the Company is unable to pay its’ debts as they become due … the definition of insolvent.

The statement of cash flows tells us there was $ 5,587,000 less cash than 3 months previous. Net loss for the period was $ 2.9 million which is curious because the Co somehow managed to break even on the gold it actually did, apparently, produce.

Perhaps the most perplexing transaction is the Red Kite gold loan of $ 10 million. Its impossible to say what exactly happened to the $ 6 million that was immediately drawn down on this loan, although its very clear how grossly expensive this “financing” is turning out to be now.

ATW completes $10-million (U.S.) loan, marketing deal


2009-06-01 17:17 ET – News Release

Mr. Graham Harris reports


ATW Gold Corp., further to the company’s announcement in Stockwatch on May 21, 2009, has closed the $10-million (U.S.) loan and production marketing agreement with Red Kite Exploration Fund Limited, part of the Red Kite family of funds. Proceeds of the loan are being used to increase production at Burnakura, for exploration to increase resources and reserves at Burnakura and for general working capital.

Casimir Capital LP, acting as agent in respect of the Red Kite transactions, receives a commission of 6 per cent on the funds raised under the loan and 500,000 agent’s warrants, each warrant exercisable for one common share of ATW at a price of 80 cents per share until June 1, 2011.

Graham Harris, chairman of ATW Gold, commented: “ATW is pleased to have completed this arrangement with Red Kite Exploration Fund Limited. This capital provides us with the ability to expedite production and mine life increase at Burnakura in a non-dilutive manner. We anticipate updating shareholders on our expansion progress shortly.”



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