RE:If you think this is good news there is a chance youradar17 wrote:
didn't read far enough down. Never mind the cost and dilution that comes with the $1M portion but I have got to be reading this part wrong or my calculator's on the fritz....
"The Gold Prepay is a secured loan to be repaid in gold at a pre-agreed volume and price. For every US$1 million drawn down by Equitas, repayment will require 2,100oz Au if within 1 year of drawdown, or 2,300oz Au if repayment takes longer than 1 year but within 3 years. If the full US$5 million is drawn, repayments would range between 10,500 ounces of gold and 11,500 ounces of gold."
Do the math... for the $5 million dollar "loan" they will be making a payment of $13,000,000 to $14,000,000, at today's gold prices?!?! So that's $8 to $9 million dollars just in "interest" on a $5 million loan. Looks like somebody will be making money, it just won't be EQT or its investors. Wow, is all I can say.
Or, the ounces of gold in the ground are sizeable so EQT mgt agreed to the gold payout for every million borrowed.