TSXV:FCO.H - Post by User
Comment by
thecatherderon Apr 06, 2011 6:21pm
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Post# 18395966
RE: From Grandich today
RE: From Grandich todayAny investment bankers in the group! Here's a question: how does FCO secure the letter of credits for the $77 million or so? Banks have to issue LOC's but to do so they need "security". If the mine and mill were built they could get the mine and mill as security IMO. But all FCO has now is $80 million of cash. If they put the cash up as security they can't use it as it would be restricted. It will be interesting to see HOW they access the muni bond subscription, get the banks to accept LOC security, AND end up with their $80 that was just raised. Any ideas? BTW- this is big time "timing" problem...isn't it?