RE: RE: RE: RE: RE: No downside ( slight revision) I agree with your restated numbers, 65,496,186 shares will have been issued when the transaction is completed of which FNR will own around 55% approximately which I believe will end up being 36.2 million shares. After 1,380,000 options at $0.40 thru to June 8th, 2016 and 1,053,547 warrants at $0.30 thru to December 15th, 2013 the fully diluted ends up being 67,929,723. The FNR shares had a cost of $12,185,858 as at June 30th, 2012 plus any extra costs incurred since then results in the $0.35, which will have been arrived at to avoid FNR realizing a loss.
Clearly the managements involved have the mining plan and feasibility studies as work in progresses. They can see the numbers albethey not finalized. I understand that somewhere between 150,000 and 250,000 ozs are there and will cost about $900 all in to get to market. That's a profit ( at $1,500 pog) of between $90-$150 million over the next 4/5 years. I read somewhere that $5m to $7.5m will be needed in capex and operating costs to get the project fully operational.
The FNR loan will be exchanged for a Convertible Debenture which will have a three year term, maturing on the third anniversary of Closing and will pay interest at the rate of 8% per annum, calculated and compounded monthly. Principal and interest payments will be made in arrears in quarterly installments, in the set amount of 2% of the gross monthly gold sales. The outstanding principal amount of the Convertible Debenture will be convertible at the option of the holder into common shares of Omineca at a conversion price of: (i) $0.75 per common share prior to the first anniversary of the Closing; (ii) $1.00 per common share on or after the first but prior to the second anniversary of the Closing; or (iii) $1.25 per common share on or after the second anniversary of the Closing.
Presumably FNR will now announce the date for the Conference Call promised for around the end of September during which Tom et al will perhaps provide additional information and estimates and respond to questions. In order to better understand the economics of the Wingdam project as they impact FNR it would be useful to have answers or indications to at least the following questions.
1. When will the mining plan and the feasibility study be finalized and available for review.
2. Within these we need answers to a) the remaining investment required to become operational b) How long will it take to get operational, c) What is the resource estimated to amount to and d) over how long will it take to mine and at what cost per oz?
Until then the value of the FNR interest is impossible to assess. These things always take longer than one would hope for. We're moving in the right direction. GLTA