RE: Excellent project!! Selling a NSR to a division of an insurance co. was brilliant
I've got a question. How can you sell something you don't own? . Only $3,100,000 of $10,200,000 has been paid, so Red Eagle doesn't even have a controlling interest. With a cash assets of $3,563,557 (June 30 2012) and 17,000 m proposed drilling and cash payments of 1,000,000 (15 Dec 2012) and $5.500,000 (30 Nov 2013). It appears a major cash raising (dilution of shares) is coming.
From Consolidated Financial Statement June 30 2012
The following table sets out the payments, including the revised Final Payment (all US dollars):
Cash payments:
Paid $ 3,100,000
Due upon title transfer of concession contract LDM-08061 600,000
Due on or before December 15, 2012 1,000,000
Due on or before November 30, 2013 5,500,000
Total: $ 10,200,000
Next question I have is on metallurgy.
The high grade intercepts which contain most of the gold in the "wide" intersections of oxide are of coarse gold. So possibly gravity recovery before heap leach? The info released to date doesn't address this situation. So how can an investor evaluate the economic potential?
So "Excellent project", wish I knew.
In the meantime my wallets still in my pants and the checkbooks in the safe.