OTCPK:FRSAF - Post by User
Comment by
JohnEStromJron Nov 10, 2011 1:17am
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Post# 19225202
RE: RE: RE: Do We Need New Management?
RE: RE: RE: Do We Need New Management?Gaberlunzie, Fire River has a contract with the outfit owning that C-130 to fly the concentrate out. The standard shipment has been 24 bags per shipment but the first shipment was for 48 bags or two shipments. That same carrier does fly in fuel and other air freight. They couldn't afford to fly out one bag at a time - they would go broke fast.Those three shipments netted Fire River nearly $3 million. That will buy a lot of fuel and food for the mining crew. In their NR they said they had an immediate need for only $1 million [why?] and the remaining $6.5 million would be if it were needed. That's a mighty big slush fund when they've no idea as to whether they will need it. They need someone who can come up with an estimate of their cash requirements. I thought that was what a COO did but I guess I was wrong. I don't object to the amount of the loan as much as the terms and tying up ALL of the company's assets. A run of bad luck and we're sucking wind. This was not a smart move by Goodwin - essentially a $7.5 million buyout should Fire River fail to perform. In this economic environment that is how companies go under.