RE: Operating Line Of CreditSo, if your interpretation is correct, kiktyre, this is not hedging our silver.
But, if it's not hedging, what are we doing?
Are we selling our silver at market prices to Auramet instead of Penoles?
I hope they will pay more for it because otherwise I cannot understand why we are giving away all those warrants + fee + 12% interest.
Also, I don't understand why we are making such a financing exactly in the middle of a credit crisis with financing costs presumably at their highest.
Or ... maybe ... is it because Penoles is not processing all of our silver and so, through this arrangement with Auramet, we can produce more of it an being paid before it is refined:
"[...] Auramet will pay for silver produced by Mineral Excellon prior to the same being refined into deliverable form [...]"
and just stockpile 50% of the ore in order to process it through the mill we're going to build or through Penoles whatever comes first?
If this is the intent of the arrangement it would be a positive development.