RE:rule 2004 examinationWould all seem like requests former Board and Executive would be more than willing to share and accomodate, no? Don't they have an obligation/duty to co-operate? I guess degree is subjective. Anyhow, I just want answers.
RE: Heavy Equipment...
Always wondered why (according to the Dec 31 2012 financials) they signed a FRONT-END LOADED financing agreement with Catepillar for 3 pieces of heavy equipment (1 loader and 2 off-highway trucks). Down payment of $560,000 followed by four consecutive monthly payments of $298,019, with remaining monthly payments of $97,845. Equipment WAS delivered to the mine site at the end of December 2012 according to the financials. Would you do this in a non-cash-flow positive state? Was this equipment absolutely necessary? Surely they were mining with other equipment up to that point. This was not sufficient? Also what happened to this equipment GGN supposedly bought AND WAS DELIVERED to mine site at the end of December 2012? They had not missed a payment between then and the end of January (when times were so desperate that JV was signed). Why was this equipment PURCHASE never mentioned in a company press release? They released an update on Dec 5 2012 and there was no mention of this new equipment of new ore mining. FURTHMORE (and more importantly IMO), in a March 1 2013 news release why do they talk of having ordered heavy equipment (1 loader and 1 haul truck) to enable mining and addng fresh ore to the heap leach pad? WHAT HAPPENED TO THE SAME EQUIPMENT THAT WAS SUPPOSEDLY ON SITE AT THE END OF DEC 2012? There was not enough time between delivery of the Dec 2012 equipment and March 1 2013 for anythign to be re-possessed etc. DISCLOSURE MAKES NO SENSE IMO.
red911
March 1 2013 NR:
"Heavy earthmoving equipment, including a loader and a haul truck, has been ordered and is scheduled to be on site by the end of March. With this additional equipment, Borealis will be able to mine and add fresh ore to the heap leach pad with the expectation of increasing recovery rates and decreasing the cash cost per ounce. "
Dec 31 2012 Financials:
Heavy equipment purchased with long-term debt $5,601,746
Page 11:
Caterpillar Financial Services Corporation
On December 6, 2012, the Company entered in to a financing arrangement with Caterpillar Financial Services Corporation (“Cat Financial”) for $5,601,746. The funding provided for the purchase of three pieces of heavy equipment: one loader and two off-highway trucks, which were delivered to the mine site at the end of December 2012. The loan is amortized over 48 months and accrues interest at a 2.9% rate. Payments consist of a down payment of $560,000 followed by four consecutive monthly payments of $298,019, with remaining monthly payments of $97,845. During the nine months ended December 31, 2012, the Company paid $546,462 in principal, leaving an aggregate balance due of $5,055,284.