Fabled Silver Gold Corp T.FCO

RE: RE: RE: Possible Financing Strategy

[JohnEStromJr]

boozerbyron,

If  an offtake agreement is for just the 'byproduct' metals that would be good but how does one value gold, for example, when most think gold is going to continue to climb due to the world economy, collapse of the Euro and the possibility of a "double dip" recession.   I hope it works out but after management negotiated that loan with CoalCorp I'm a bit pessimistic.  

After reading the Globe & Mail article of July, 2009 that Doug posted May 9th I'm even more skeptical of management's ability to negotiate a loan and get the mine and mill built.  A 12% [going to 15%] loan can eat us alive, never mind we gave up 15% of the company for that usurious loan in the first place.  

I agree that management  should try to pre-sell production - either to end users like  Boeing, Airbus or their contractors which would eliminate the need for a "middleman" like Glencore and net FCO the maximum amount.  What's troubling, however, is that CoalCorp owns or controls a fair bit of the company - a HUGE mistake - and we can see a slow bleed of the value of the stock from an already beaten down price.   This is how the large international predators insinuate themselves into small companies and bleed them dry - sort of like getting in bed with the Mafia.  We'll see but I'm pretty unimpressed [for the first time] with management.   This was NOT a good loan they negotiated and I've great concern.  I hope I'm wrong and if I am I'll say so.  Fingers crossed that they can pull a rabbit out of a hat.