NORTHERN SUN MINING CORP LBEFF

Pray For A Christmas Miracle

[doingthejob]

But, it probably won't be until next Christmas.  JJ appears to be moving cautiously as the $800K is a drop in the bucket as to what they have already committed and this amounts to approximately 2.5 months of interest.  What it really comes down to is that the current resources and reserves are not enough to bring JJ into the game with both feet.  They really need proof that there are significantly more NI resources on the LBE properties to become part of this game.  Because of their controlling interest, they can ensure that they are paid before all creditors in the event new and significant resources are not discovered.  However, I do believe that they will be aggressive in their exploration to answer this question.  The result, however, is one of a double edge sword.  If significant resources are discovered then JJ is free and within its right to convert the "preferred" shares to "common" shares diluting the original shareholders to 23.7% of their original equity in the company.  If no new significant resources are located then JJ gets all of its money back, with interest, which is now approximately $4,000,000 per year or $333,333/month.  LBE would be worthless if no new significant resources are located when you consider the future capital and operating costs, and the current debt load.  So, you see, you are dammed if you find them, and you are dammed if you don't.  That is what limits the upside share price of LBE.