I spoke to TLR. They have a little under $5 million in cash, and about another $1 million due them from the sale of the mining unit.
They don't have to spend 1 penny of that money on Butte. They can wait for the Hard Rock permit and continue to drill this year and next year in Nevada.
When the Hard Rock comes through, then they will look for debt financing. They can afford to look around, and don't have to be pushed around, now that they hand money.
The deal with Ron getting cash doesn't begin until good news at Butte.
So, they are in AWESOME shape right now.
$20 million market cap? And Ron put in $24 million already? hahaha!
The only long term down side is that Ron with get 5% of Butte the whole way. But, that was what he wanted to delay payment.
Let's look forward 1 year. About 45,000 ounces of gold, 5% to Ron, so 42,750 for TLR. Figure $1000 cash costs and $1750 gold by then. TLR is earning $32 million/yr. First year to pay back all loans, then home free.