Cline Mining Corporation T.CMK

the bond

[beaver911]

Can someone clear this up for me. They issued a 25 million bonds at 10%. So CMK has to pat out 2.5 millionn per yr until they expire. How can this be a good way to borrow money?? A 10% rate is like using a credit card. It seems like a high risk bond to buy. I feel this is a bad sign for CMK. Anybody agree?

[Eigen337]

This post has been removed in accordance with Community Policy

[kingyahoo]

"In consideration for the Company being permitted to draw down on the commitment of the Lenders to take up the Bonds, the Company issued 1.25 million common share purchase warrants (the "Second Draw Warrants") to such Lenders. The Second Draw Warrants are exercisable at a price of C$2.49 and will expire on April 30, 2015. Ken Bates, the President and CEO of the Company, commented

[retiredrcaf]

Eigen337, I have asked this a couple of times before without an answer by anyone. Why is Cline not trying to get interest FREE loans from local and state government? They are afterall creating a fair number of well paying jobs for the area.

[miner8740]

Arch Coal just received 1 billion load and their rating was cut by Fitch, cutting back on met coal and thermal coal production, this may not be good for CMK who is trying to established a market when everyone else is cutting back Floodgates may open soon    

[bond46]

The possible reason eigen is that local and state governments in the US are strapped for cash themselves, given that we have not come out of this Great Recession yet, Add on top of this the legal constraint that has been imposed on these governments by the Constitution that they must balance the budget every year and that it's illegal to go into deficit, and you have a pretty picture why it

[mr1derful]

and yet I just listened to the Walter Energy conference call and they are investing $1.2 billion to create 530 jobs in Tuscaloosa, Alabama by developing an underground met coal mine. On the call, WLT's management said their net cost would be about $600 million after tax incentives. They plan on creating 530 jobs and generating an annual payroll of $45 million. I don't think any government

[jpast]

I agree, and i think the management of cmk is looking at all there options they might have going foward. Global growth has slowed down but not as abysmal as some investors are taking it. You have to think of the future with this company and what achievements can be made down the road. i think there is still is alot of value much higher then the price now, i think Management have to be looking at