GREY:GYPHQ - Post by User
Comment by
metcoalfanon Sep 26, 2012 3:22pm
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Post# 20417119
RE: RE: NEW NEWS!!
RE: RE: NEW NEWS!! >>"the Company and Waterton agreed to amend the terms of their existing Gold and Silver Supply Agreement to permit Waterton to purchase all of the Company’s production at a 3% discount to prevailing spot prices."If that means what I think it means instead of the original 20% decrease
The 20% applied to the portion of production used to repay the note in specie - and I would guess that most certainly still applies, with an additional 5 million subject to those terms. The old 1% applied to production over and above that which was used to repay the note, and that now looks to be 3% instead. All said though, I'm happy with the terms. You can look at their neighbor - distant neighbor - American Bonanza- which just did a loan repayable in 1,200/oz gold - so 20% is not shabby in this market - I can guarantee you without checking that Waterton did not give up their 20% on the gold used for repayment of loan. To fund 900k a month at a 20% discount to spot given current prices, that's 625 oz a month. Not undoable. I did visit the project in July, and I saw the area that I think the new ore will come from. It's very accessible, but they need some dump trucks and an excavator and I've been wondering where the money would come from for that - the w/c didn't seem to be there with the pit and plant expansion plus the required bonds. This 5 million would get it done I think.