Mercator Minerals Ltd MLKKF

Excerpt from prospectus

[Sharpie009]

"Pursuant  to  the  terms of  the note  indenture dated February 15, 2007 governing  the Company’s 11.5% secured
notes (the "Notes") due February 16, 2012,  if  the earnings of  the Company before  interest,  taxes, depreciation
and amortization ("EBITDA") on a consolidated basis in any quarter beginning after March 31, 2009 does not
exceed interest expenses under the Notes for that quarter, the Company will be obliged to repay to the holders of
the Notes  the  lesser of  its Free Cash Balance  (as defined below)  and 25% of  the outstanding principal of  the
Notes (currently US$120 million), such payment to be made within 60 days of the end of such quarter.  The total
of all amounts repayable under the EBITDA provision will not exceed 25% of the original total principal of the
Notes (US$120 million), and the 25% limit will apply on a cumulative basis during the term of the Notes.  "Free
Cash Balance" is defined in the Note Indenture to mean, at a particular time, the cash and cash equivalents of
the Company and its subsidiaries determined on a consolidated basis and in accordance with Canadian generally
accepted accounting principles as of  the most  recently ended  financial quarter of  the Company.   Accordingly,
the Company may be required to repay to the holders of the Notes its Free Cash Balance (which may include net
proceeds of this Offering) if its EBITDA for any such quarter beginning after March 31, 2009 does not exceed
interest expenses under the Notes for that quarter. "

Here is the risk.  High risk/reward play here.  Could make a ton of money.   But also be prepared to lose everything.