sclarda You're already admitted you really didn't do due diligence but relied on Fire River's PR that they would be producing 50,000 ounces per year. Yes, that sounds impressive. You were also impressed by Sprott making a $7.5 million loan. Evidently what's good for Sprott is good enough for sclarda - right?
Let me ask you a question. If you saw Warren Buffett or Bill Gates by something at $100 would YOU think that was such a great bit of information that YOU would pay $500 for the same thing? That is the difference between Sprott and you. But wait, there's more. THEY have collateral and you [and the rest of us] have a piece of paper. In other words - we have squat. Sprott effectively owns every paper clip, rock hammer, generator and every other asset Fire River has - all based on that $7.5 million loan that WE paid $825,000 to get.
Have they spent that money? Well, they immediately made a $1 million draw against the loan on November 15th and the last tranche, $6.5 million on December 12th. Here's a little clip from the NR
"the second and final drawdown of $6.5 million on December 9, 2011. The funds drawn under the Credit Facility are secured against all of the assets of the Company and its subsidiaries. Funds drawn under the Credit Facility are repayable on or before November 15, 2012 and accrue interest at a fixed rate of 12% per annum. "
"In connection with the Credit Facility, a structuring fee of $75,000 has been paid to Sprott in cash. Pursuant to the terms of the Credit Facility, a non-refundable share bonus payment in the amount of $750,000 (the "Bonus Fee") being 10% of the Credit Facility, has been paid to Sprott in common shares of the Company. 3,260,870 common shares were issued from treasury to Sprott on December 9, 2011, and carry a legend restricting them from trading until April 10, 2012"
So, not only did we pay $825,000 for the priviledge of borrowing $7.5 million from Sprott for ONE year [pledging every asset Fire River owns as collateral] but we get to pay them 12% interest on top of that. That was a hell of a deal CEO Richard Goodwin made. Topping THAT off is our richest ore has disappeared. Gone. That's 25,000 ounces or over $42 million. Were I in your shoes I would wonder what other crap the company has been putting out instead of attacking the messenger. Facts are stubborn things and easily verifiable - you should be more interested in your investment and not attack the messenger but suit yourself. I think some here are interested in their investment and worry that Fire River has decided to be less responsive to it's owners.