If you look at Liberty's Balance Sheet, you'll notice the sharp increase in current liabilities, notably the current portion of long-term debt line, $11.4mm. The company no longer has excess working cash, so it is borrowing as it requires cash for various needs (operational working capital, equipment, mine construction, exploration, etc) and thus has no actual cash on hand sitting idle. This current working capital borrowing is happening from the JJNICL loan. The Salman loan is already borrowed in full and spent.

As of Dec 31, 2007, the company had $1.7mm in cash and $3mm in debt (current and long-term). As of Jun 30, 2008, it had no cash and $11.4mm in current debt and $14mm in long-term debt.

And yes, you would be right to worry about whether the company has enough access to funds to make it to full production, especially with the delays. We are generating precious little cash from operations with these low nickel prices and McWatters and Hart still need to burn a lot of cash to hit their target dates. We are almost maxed out on our line from JJNICL and really have no other alternatives to generate cash. Worse, these loans are secured by our assets... if we burn up our cash and fail to generate much/any from operations because of low nickel prices, the short expiries on our loans will find us having our core assets seized and nothing left for investors if we are not performing well enough to secure new long-term debt financing. We're on the hook for over $3 million in interest alone over the next year.

Thus, our share price is trading much lower than the value of the company. Our Sept 30/08 statements will look even more perilous.