NORTHERN SUN MINING CORP LBEFF

RE: RE: RE: RE: RE: RE: But what it doesn't say...

[JohnEStromJr]

Jilin Jien owns 51% of the company outright at this time for making Liberty Mines a loan.  They also have the right to buy an additional number of convertible preferred shares - part of this same deal - which  would take them to over 76%.  True, they must buy them but the price is VERY cheap.  It's not clear whether they have the sole right to buy and Liberty Mines can't stop them should they choose or not but that second tranch of shares - the convertible preferred - are also collateral for the loan.  Until they relinquish that right [I don't think they will] the company [US] get to pay them either 8% or 10% interest.   I'm quite sure they have purchased the additional shares to take them over the 80% mark.  If that's true, at some point they can take Liberty Mines private and the then current shareholders will be bought out - for what the company wants to pay.  Make no mistake, we have no say in this.   Liberty Mines could explain the convertible preferred shares and Jilin Jien's right to acquire them but have chosen not to.  That's pretty unimpressive and that is why I'm sour on this company - their lack of candor.  Keep in mind this "deal" was concocted behind closed doors during the "Quiet Period" and we've had the barest of explanations.  All for a loan.  Not bad negotiators, those Chinese but I can't say much for "our side". 

If anyone has a different 'take' on this please provide a link as we could all benefit from finding out what's going on.