Take physic, pomp

Cardinal Resources (CDV.to) and the cost of getting U$25m out of Sprott USA

Cardinal Resources (CDV.to) filed its quarter to December this morning and it makes for interesting reading, what with the U$25m loan it took out with Sprott Private Resources Lending now showing its effects. Here’s what LIBOR+7.75% does to your P+L (note: CDV file in Australian Dollars):
And here’s how its booked to the balance sheet. 
If you’ve ever wondered why they call Rick Rule’s shop mining’s lender of last resort, you might want to consider this example. As for CDV, they took the money in order to get to feasibility stage, not into production or anything. Now with 380m shares out and a market cap of around U$120m, wish them luck because they’re going to need it.

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