Let’s get some facts firstmouserman: RE: There are things we know and…
“Must be getting ready for another dilution - by the timethey pay for 1.5 million acres of permits in SASK and now the deal for a coalresource in Virgina NAG should be flat broke.
And we all know raising money right now wont be easy.”
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Facts:
Permits will be issued without paying one further cent. Allthe required moneys have been paid long ago by NAG, including the rents for thefirst year for each permitted area covering up to 800 hectares.
This pre-payment condition is prescribed in TheSaskatchewan Coal Disposition Regulations, 1988. No payment, no applicationaccepted. No acceptable application, no Comfort Letter issued.
NAG confirmed in NR July 14, 2008 receipt of Comfort letterand priority status covering 1,387,863 acres.
Total paid: 1,387,863/800 x ($100 recording fee + $800annual rental fee) = $631,800.
As of end of Q2 or June 30, 2008, the cash position was$1.74 million. Some said over $2 million presently from options I guess. After the anticipated payments of $0.3million to ACC, it’s still in good shape for initial actions in Appalachia. Wewait for more details.
The not so pleasant prospect and risks in having to raisingmoney in this tumultuous time, or any other time, is exactly this deal has thepotential to mitigate or even eliminate.
KT