RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Full steam ahead..Drosite contract!!It's actually called an LC not a LOC.
Although LC's as a form of payment have been around for centuries anyone who has international business experience knows payment by LC can be an extremely convoluted process where wording of the LC is critical and payments are tied to performance metrics.
If I were a PYR shareholder I'd be very concerned about this method of payment expecially given the present state of their balance sheet. Depending on how this LC is structured PYR may have to try arrange short term financing against the LC so as to be able to deliver product. That will not be an easy task and will likely be very expensive financing. If they're lucky someone like EDC may step up since it's an export deal but obtaining EDC financing is typically a very cumbersome process as well. In the mean time PYR is running on fumes.
The devil is going to be in the details of the LC. Shareholders had better hope it will be structured to allow DRI to draw progress payments up front and remit payments to PYR. Any buyer of PYR equipment would certainly have done their DD though and know about the precarious state of PYR's financial situation.
It will be interesting to see what will actually happen. There was a reason why it took so long for the exchange to allow PYR to issue the initial news release. The exchange is skeptical as is the general market as well.