You do make some good points, although you're a complete cynic. It doesn't make much sense that ECU couldn't get financing with $40 silver prices(especially since AUMN managagment says that $10 million is all they plan on spending on Valerdena this year). Unless of course ECU management believes the Golden Mineral's silver resource potential is on par with Valerdena(merger of equals). They did clearly say in the merger presentation that it was a merger of equals.
To say that they couldn't get a debt deal done is just your cynical opinion, just like your comment about the price of silver having no importance. A debt deal or a very low interest convertible preferred offering makes the most sense. Hopefully the convertible price will be much higher than current levels.
As for the technicals, as of now I'm not bearish unless the stock closes below $10.93. The lastest drift down is a retest of the lows from mid August unless proven otherwise.
Time will tell, but I think it's much more risky to be short than long.