GREY:OLEPF - Post by User
Post by
iop42on May 13, 2010 12:28pm
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Post# 17095244
What Not To Do
What Not To DoThis is an example of Carpathian and of what I hope OLE never does. This has to be some of the worst loan terms and one of the biggest ripoffs by a bank that I have ever seen. Here is a quote from the news release;
“Under the terms of the agreement, Macquarie Bankwill make upfront cash payments totalling $30-million (U.S.) in returnfor which it will have the right to purchase 12.5 per cent of the goldproduced from the project at a price of $400 (U.S.) per ounce of payablegold delivered. Based on the current life-of-mine model (as determinedfrom the preliminary economic assessment (PEA) previously released on Aug. 12, 2009), the effective total proceeds per ounce toCarpathian per delivered gold ounce will be approximately $730 (U.S.).The price per delivered gold ounce to Carpathian will be subject to aninflation escalator as well as upside price participation for Carpathianof 25 per cent of every delivered gold ounce delivered at a price above$1,850 (U.S.) per ounce. Macquarie Bank will also have the right toextend its participation to purchase 12.5 per cent of the additionalgold produced from any underground operation within the miningconcession and five contiguous exploration licences, as well as any openpit and/or underground operation on the balance of the property, bycontributing 12.5 per cent of the capital required to develop theexpanded production and paying $450 (U.S.) per delivered gold ounce.This price per ounce will also be subject to adjustment by the priceescalation and inflation factor described above.”
First, of gold is going up and up while everything else remains fairly flat. If everything else doesn't remain fairly flat then gold will shoot higher quicker.
Second, inflation numbers are manipulated (fixed).
Third, who is so desperate to get a mine going for such a deal at the expense of the shareholders.
Fourth, it goes to show what a ruthless, immoral, inept bunch of crooks are in the banks. And in this case the BODs of Carpathian.
Did I miss something?