TSXV:GSVR - Post Discussion
Post by
ErinBrockovich on Jan 01, 2024 8:52am
Lex Explains GSVRs Loans
ovided critical liquidity in the very early stages but I’m not so sure that the relationship is still serving both parties equally. I’d be happy if the terms were spelled out really clearly and I could understand why loans are being paid off early while taking out new ones. It puts me in mind of Household Finance.
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@lexcon @Franschoek actually the terms are spelled out very clearly. You need to go to SEDAR docs to find the actual contracts. In one instance they paid off one loan early to get it out of the way and rolled the other loan into the new one at a little lower interest rate and a significantly higher price for the metals being used to repay the loan (they dont sell metal and pay the loan in dollars, they repay the loan in metal at a predetermined price that applies over the life of the loan, so by terminating early/renegotiating and rolling into new loan facility they did so at a higher metal price, extended the term overall (and got a short deferral period in the gap between loans) These have all been to the benefit of GSVR and hence to benefit of shareholders as well. 5
@lexcon the contracts are interesting reading (if you are into that sort of direct research on your own to better understand things)--the process by which they get paid an initial value upfront with final adjustment settlement later is quite intricate and well thought out, multiple 3rd party assays, ajudication, etc looks like a CEO with strong financial background (like say a James Anderson sort of CEO) really covered all the details well.
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