Feb 25 2010"Gold Wheaton is extremelypleased that this issue has been successfully resolved. We believe thatwith appropriate funding, the previously planned reduction in MWS goldproduction can now be reversed and that the second gold plant willcontinue to operate at full capacity until the TSF is able to accepttailings," said David Cohen, CEO and Chairman of Gold Wheaton.
There is no penalty forthcoming as the production hadn't decreased at all, so what is with the 14 million announced by ??? S&J or Miller & Brunette or FIU new management or that BOD panel. The completion in 2011 could not have a penalty assessed and they make it sound as if that is something to do with the deal. Some slippery work going on Khanyile.
Next question
Are they swapping cheap share too GW for their 2009 commitments. S & J are taking cheap shares as well? Do we shareholders need a lawyer to work this out.
How about Vulisango to the rescue. At least, if they don't like it, something gets said!
This was in the restructuring statement issued by FIU...
Gold Wheaton may reduce its $20 million commitment to the extent that the private placement offering to accredited investors exceeds $65 million in gross proceeds.
Followed by
The Notes will be guaranteed by the subsidiaries of the Company, secured by second ranking security over all assets currently encumbered by Gold Wheaton and first security over all other current and future assets of the Company, not be redeemable until maturity and be subject to typical anti-dilution protections.
In connection with the Offering, Simmer and Jack has agreed to exchange its $22.1 million loan amount plus accrued and unpaid interest for an equivalent value of Rand Notes (“Debt Payment”).
Also in connection with the Offering, Gold Wheaton has agreed to settle in part the US$42 million
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completion penalty due pursuant to its gold stream transaction for 14 million Common Shares and a commitment to complete construction of the third gold plant module and satisfaction of the technical completion tests prior to September 1, 2011 (the “Penalty Payment”). In the event that the construction and tests are not met by such date a US$1.5 million payment shall be payable by First Uranium to Gold Wheaton on the first day of each of September, October, November and December 2011 unless such tests have been met prior to such date. In the event that these commitments to construction and technical completion are not met prior to December 1, 2011, a remaining penalty of US$30 million will be payable.