NORTHERN SUN MINING CORP LBEFF

RE: RE: RE: John

[JohnEStromJr]

animal1,

Thanks for your courteous reply which beats a couple of others on this forum that I could name.  I hope you're right on your prognostication but let me mention a few things to ponder....

Jilin Jien owns not 51%  but over 76% - not including the shares no doubt being purchased by Jilin Jien.  I base my numbers on the fact we use to have 83 million shares and now have over 167 million shares.  In addition Jilin Jien has the sole rights to acquire an additional 189 million [my guess - but close]  of convertible preferred anytime during the next several years.  They can be exercised at any time for - as I remember - $0.11 per share.  That would give them [roughly] 266 million shares of a total 349 million shares or 76%.   If or when they own over 80% they can take the company private.  Since they have controlling interest in the company that is their right as I understand.  In the mean time the "company" will pay them 8% per annum on those 189 million shares.  I don't know what value they're basing that on but if we use the $0.11 figure x 189 million x 0.08 that leaves Liberty Mines owning Jilin Jien $1,663,200 per year just on those convertible preferred shares.   Add the cost of the $4.5 million that is being borrowed and due to be repaid July 30, 2010 at 8% we will be owing over $6 million + operating expenses and we have no production.

Finally, how much will Jilin Jien pay for the metals?  Will there be any consideration to shareholders for byproduct metals?  There was not in the past.  Will the payments be as in the past where we're paid a percentage of the estimated with an adjustment - up or down - several months down the line?  

The fact they can, when they wish, take the company private whenever they wish.  The benefits are to evade/avoid/negate reporting.  At that point they can do anything and everything except cheat the Canadian government on taxes.  I'm still very skeptical about this deal and about how everything was conveniently done behind closed doors during the "quiet period".   But like you we'll see.