RE: I wish.... LSG pulled the trigger on this because of:
1) Immediate need and...
2) Ability to pay back in the short term.
Per the preliminary econcomic assessment, management identified a payback period of under 2 years for the $160 capital investment. As that funds to supplement this capital investment are coming from this deal (Sprott) and the Franco Nevada deal, I anticipated the debt to Sprott ($35 million) loan will be paid off before the end of 2014 at the latest, probably much sooned given the interest rate (9.5% v. 5% on line of credit). Since the other $35 million "gold loan" and the Franco Nevada deal do not require payment, the original line of credit will be paid back next, since this expires (i believe) during 2014. That would remove the credit facilities from the Balance Sheet. So in summary, the debt payoff order will probably be:
1) Accounts Payable - as incurred and due
2) Sprott loan - $35 million; sometime in mid to late 2013/early 2014
3) Line of credit - $50 million; sometime in late 2013/early 2014
By the end of 2014, LSG should only have the gold loan to finish out and be debt free otherwise. That's the plan at least....
Bottom line, once the production hits 3,000 tpd and the grade exceeds 4.5g/t the cash flow becomes positive in a very strong way.