Mako Mining Corp V.MKO

Extension to 2025

[Mako2022]

If a loan is extended for another year and the company is still continuing to pay interests on that loan is there not an indirect or direct cost to shareholders?

[barrywhit]

mako2022, Wexford run both companies MAKO and SAILFISH so its whats best for them, this probably means Sailfish can still pay their Dividend....

[AkibaLeisman]

From Sailfish's perspective they got to protect their dividend and got a triple allocation in the SILJ From Mako's perspective, they got to restructure the term loan to make it more flexible to do anything, including the discovery drilling we're doing now which we'll have an announcement on next week.   Mako also got a single allocation in the SILJ by highlighting that it

[AkibaLeisman]

You know, when I was writing the press release, I thought somebody might ask this.  There was no "additional" costs (ie fees, warrants, etc), but yes, the 10% interest will still accrue.   The reason we extended it was because the loan went current this quarter, so it makes our working capital position look weaker than reality (you'll see that when we report q1 when long

[barrywhit]

Akiba, so there is a cost to investors????

[AkibaLeisman]

There is the same accrued interest of 10% as before.   But there was no cost to extend it.  (Ie there was no additional cost). 

[barrywhit]

Akiba, but will there not be an extra 12 montth accrued interest at 10% to pay? 

[Mako2022]

There's no additional cost other than the cost to borrow. If there wasn't a (cost)Wexford would wave their 10% interest fee for the additional year.  Hey at this point I'd be happy with a 10% return as well. Maybe after upcoming announcements. 

[AkibaLeisman]

The money has a cost.  It's just that it's the same cost as it was before.  Therefore there is no additional cost.     I am still planning to repay the loan under the same recent schedule (albeit that was delayed from the original schedule we laid out in 2021 after the metallurgical challenges we had last year).  

[Mako2022]

Ok understood  Another piece toward the puzzle accomplished