Red Eagle Mining Corp RDEMF

news from Lima

[ccrfmac]

Last tuesday I attended a meeting held in Lima with Patrick Balit, VP of Corporate Development: Key Highligts: the mine was cashflow positive in March and it will be cash flow positive at the company level by May. The production is around 2,600 oz /month right now and they expect to increase to 3,400 oz in may and reach the steady level of 5,200 - 5,300 oz/mont by July. They are improving the production methods and equipment, they expect a few more machines by July to reach 1,000 tons and that production level. The new equipment will be paid with cash flows. Management expect to get 45,000 - 50,000 oz this year and 65,000 oz next one. The lenders have give the company their support (they are the biggest shareholders also) and have postponed the loan repayment one year, but they will be start paying 400,000 US$ interest in August. The loan repayment will be posponed until April next year. Management is confident that once the company starts to has positive cash flows they will refinance the debt with a commercial bank at much better condictions. Finally there is the posiibility to add 200 - 300 Tns more (it may be artisanal) of ore since the mill has capacity up to 1,200 - 1,300 tons.

[Chucklee]

I'm sure this is all true but i wouldn't be hung up on it. I'll wait till i see it. Its unfortunate that myself and hundreds of other shareholders got screwed. the stock needs to more than triple for most of us to breakeven. and lack of insiders actually buying isn't providing me any comfort. Granting themselves cheap options is a slap for us shareholders.

[staz]

What was the occasion in Peru, some kind of mining conference?

[ccrfmac]

No, it was a meeting with retail investors arranged by Kallpa Securities, I was lucky enough to be invited at.