Galway Resources Ltd V.GWY

BMO Loan

[SchiffKnowsBest]

I wonder how RH will address this question at the AGM?

 

--> So Rob, how exactly did you manage to get that $10mm loan?  I work for a bank and there's no way a Venture listed company, with very little cash, drilling in Colombia, at least 4 years away from production, with no collateral, and no previous previous credit history is getting that loan....So how did you manage to secure $10,000,000 at prime plus a half when I can list you examples of other TSX companies who have had to pay at least prime plus 3%, pledge assets, etc, etc..........Please enlighten us on the circumstances for that to happen?

 

How do you suppose he tiptoes around that one?  Answer......He knows he can't and my guess is the reason will be revealed before Thursday morning.

[bepractical]

A very common sense outlook on the loan. There has to be a third party involved which guaranteed the loan in some form. A bank loan at this level of exploration is a signal to buy me!  

[Geef]

The question is whether the "buy me" is just for Calif or the whole Kit and caboogle.  If its just foe Calif then we could hve a protracted few months ahead of us until the rest is sold.

[highfinance]

One possible scenario for this unsecured Bank Loan might be to allow time for a  BMO Nesbitt Burns negotatied "bought deal financing" based on the outcome of the 43-101 and the timing of the closing of all the concessions being consolidated. BMO might be very content to coordinate an unsecured Loan in this case knowing that one of their subsidiaries was negotiating something along

[SchiffKnowsBest]

Interesting thought highfinance.  It's rare to see BMO involved in small caps like Galway, but not impossible.    If this were the case then BMO would have to take the whole $10 million.  As well, it doesn't explain why drilling has stopped EVERYWHERE.  Nor does it explain why all the news started to flow the day after the Eco Oro announcement.  Nor does it

[SchiffKnowsBest]

Yeah.....Definitely doesn't add-up high finance.....BMO needs time to do a bought deal?  No chance.  On the surface it seemed plausible....But the more I think of it....No chance! 

[CWGriswold]

I was thinking along the very same lines (re: Placement) earlier this week but if it were the case I don't think the terms of the loan would extend until 2014.  Plus there's so many things that could go wrong in the meantime, POG crash, market crash, Columbian politics, etc, etc.  I don't think banks typically take these types of risks (at least in Canada). There got to