High River Gold Mines Ltd HRIVF

Investor relations

[thinker1951]

I just finished talking to investor relations and I have a better understanding of the news release. This action by severstal is a decison that comes from severstal. Hrg was not party to the loan transfer and Severstal now owns the two loans from standard. They are secured by the taparko mine. Royal gold is the first creditor on tarparko so severstal cant get the mine by calling in the loan. On top of that if they were to call in the loan it might trigger other loans to be in default and it could bring hrg down. A bankrupt hrg wouldnt seem to be in severstals interest considering they own 53% of the shares. The release was prepared by a laywer and is in laywer speak. Investor relations explained the release to the best of their knowledge bearing in mind that they were not privy to severstals motives. Investor relations is not in a position to guess at severstals motives. Another note is that severstal had already been the co-signer so they have not increased their risk in taking over the loans. Perhaps they made a better deal by buying out the loans. Hrg is still responsible for the loans as they should be. We will have to be patient and see what comes next hopefully the offer everyone is waiting for.......Question what is the per centage of tendered shares required to force untendered shares to convert in the event of an offer???