Cline Mining Corporation T.CMK

double edge

[bond46]

The whole rationalle of the restructuring is to secure the bondholders their money either by issuing shares 2billion for the 25million dollar bonds, the first tranche, and 1.7billion for the second tranche. For the second tranche of bonds, the bondholders instead of tendering their shares to anyone outsider, they tender them to the existing shareholder by issuing these Warrants. They estimate to get through this tendering 35million dollars and get their money. But if the current shareholders don't want to participate, the bond holders will sell their shares to anyone who wants to pay them 35million dollars, and the common shareholders will only own 5% of the common shares. But the whole idea is to give the company time to go into production and become profitable. If the company by Feb 28 gets into a joint venture, get sold or some other arrangement that will ensure they get their money. So if there is such a development, the stock will shoot right up in price and we should all buy at this price, 6 cents. But if there is no deal by April 30, it's a bad idea to buy shares at this price because after the dillution the price of the stock will go to 2 cents. And since the company is going to issue warrants to all of us, it is better to wait. Pick and choose. If there is dillution the company can survive and if it goes into production and makes profit, out ot this profit can buy the major shareholder out for 25million asuming the bondholders want to sell and get their money and not stay in the coal business. In that case they tender their shares to CMK for 2.013, get their money and go. And CMK takes these shares and destroys them, because the shares are redeemed, they are no longer outstanding. And there is no longer dillution as I mentioned yesterday. The only thing we lose is time, for all this to play itself out might take couple of years. in the meantime there is a double edge knife problem whether to buy now or buy later.

[mr1derful]

So where is Cline going to get the additional money to fund their cap-ex? You don't just wake up one morning and say "ok...let's start up New Elk." You need money.

[shane117]

They can get the money from a buy-out or a joint venture. If not then if they land a contract they can take that contract to the "bank" and get a loan against it.

[ark88]

I tend to approach investing from a big picture point of view, particularly in situations like what Cline is experiencing at the moment.   For me the big picture with Cline is this: 1. If one intends to hold then one must exercise the warrants when made available, or your shares will be worthless post April 30th. 2. If one intends to hold then one is of the view that having the bondholders as

[CoalRookie]

12/27/2012 New release: "Cline's management and Board of Directors expects the Restructuring to provide the necessary funding in both the short-term and long-term to address Cline's financial difficulties, including the sustaining of the Company for approximately three years of operations under care and maintenance or, alternatively, providing the Company with sufficient funding to

[rishshah]

thats the worst case scenario...where we know whats going to happen.....but if we get a sale then that scenario wont happen... i guess ken bates wants more money for his shares...and selling it would make more sense to him ...and to share holders....marret plan was just a nail in the coffin to move forward...