GREY:STTYF - Post by User
Post by
maypeterson Nov 03, 2012 1:37am
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Post# 20558045
Financing from Banks - Difficult
Financing from Banks - DifficultThe following is from a post by Couples4 on the Donner board at SH with regards to the deal that was done by Donner with SG and SME yesterday.
The conversation he had with the President of Donner is an indication of what Nolan talked about in the Q3 conference call regarding how the financing environment was not as rosy as it was made out to be in the media. He talked about some of the banks they deal with telling them that they are taking a hiatus from financing mining companies for a couple of years and also the story about the private German bank (who used to do a lot of mining deals) going insolvent.
This bodes well for SG as well as SME as the choice for miners are reducing due to the environment we are in currently.
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From Couples4 post:
Yesterday Ishare yourdisappointmentabout the latestfunding.TodayI decidedto haveanswers andI did asSwalesasked: sent an emailto the President.Itold him ofourworriesin relation tosudden changessince the lastmeeting.........One minute after I pushed the touch "send",the phone was ringing.It was Mr Champigny himself...! We talkedfor about tenminutes...He seemed a little tired,the previous weeks have forced management to change the game plan...
_First of all,even if our share of the infrastructures were paid with the last spring funding,they had to find 12,5MM$ forworking capital until the cashflows.They tried with banks and institutions in Quebec and elsewhere in Canada...even in New york...Sandstorm arrived with their proposal ,butthe considerationwasof dropping thecopperstream.Not bad,especially ifone considersthe absence of dilution...As FOXTROT says,it was the next best option.
Read more at
https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=31733719&l=0&r=0&s=don&t=list#JTMCL4W26fEUyQBl.99