RE:RE:14 percent interest. There goes any reas prospect for profitYou may be right. However, this latest financing is a temporary solution. I say this because I beleive the wild card in this is Kennaday North. Mr. Wall and company have been in serious discussions with DeBeers on how to best mine this project. DeBeers knows the value of Kennaday North, and will very likely incorporate it into the Gaucho Kue project. DeBeers will have to acquire a 51% ownership in it to remain in control. This appears to be a major stumbling block, but could be eventually resolved
What would 51% of Kennaday go for? $50 to $150 million? Whatever, a big chunk of debt can be erased..
For a more detailed analysis refer to a post by barryb on Nov. 15. He posted an article by Will Purcell. It is quite good.
Keep in mind that DD did not become a billiionaire by settling for second best. He is always thinking at least two steps ahead of the game.