RE: Alternatives... In the absence of more details outside of those in the p/r having come to light yet, I've sat down this morning and tried to piece some pieces together. I know Red and others are pretty hot about the seeming impossibility of repaying 5.6 million by July, and at the same time I'm not hugely popular these last few days for not being really upset with this deal - but I'm looking at the alternative which was 1.4 million each and every month on the old 28 million dollar loan - those payments were to start a few days ago - at 1.4 per month - they would have needed to find 9.8 mm by July to pay Watertown and avoid default prior to this deal - that's nearly twice as hard as finding 5.6 mm in the same time frame. One can try to find a white knight, but who is going to loan or fund equity facing that 9.8 mm outflow over the next 7 months....that keeps on going at 1.4 just for Waterton after that? A workout was necessary. So the next question becomes is the 5.6 that is due by July equally impossible? Waterton is surely looking out only for it's own interest - as our the rest of us - and I don't fault them for that. But their own interest also encompasses their reputation, as that is crucial for their future deal flow with other companies - you get a rep for setting your partners up for fail and you won't have partners very long. So looking at the few scant details in the p/r it looks as though they got 60% of Borealis in exchange for 17 mm of debt. That values the Borealis at 28 mm. But then their is this quirkly detail about GGN having to pony up 4 mm now to compensate Borealis for obligations incurred - which initally struck me as odd. The most reasonable explanation I can come up with is that Borealis right now has 4 mm in payables and equipment lease obligations. I recall from the last conference call (anyone who can confirm my recollection please do) that the GGN was trying to maintain a 4 million dollar cash balance, which is what they had end of last qtr. So I suspect that they are not out of cash - rather GGN currently has maybe 4 mm in cash....with 4 million in bills that haven't gotten paid the last few months. And Borealis needs another 4 mm in cash to get the new virgin ore loading going in earnest. So the deal as outlined in the p/r requires GGN to get the 4 mm caught up (keeping vendors happy), which they are 100% responsible for, plus kick in another 1.6 mm for their 40% of go forward capital call - hence the 5.6 mm loan from Waterton - that reference to 3 mm I think means that Waterton went ahead and paid those bills end of month even though the deal wasn't fully ratified. This is all pure speculation on my part, but if I'm close to right, that means that GGN still has the 4 mm in their bank - they just weren't spending it because they knew they couldn't - they had those debt payments coming due end of month too - easier to not pay venders than not pay Waterton without a workout (probably would have gone CCAA at that point and having followed insolvency for the last 10 years - you don't go into CCAA/BK without cash - then you really are toast). So, GGN owes 5.6 mm by July, plus the 400k they also owe on the 8 mm that wasn't converted by Waterton - that's another 2.8 mm - so that is 8.4 but they possible have 4 mm in the bank, so the short fall is 4.4, or 620k per month for the next 7 months dropping down to 400k per month after that. In theory, Borealis should not need to make any capital calls on their 2 partners any time soon as it is topped off with a fresh 4 million as part of this deal, and since GGN is now a junior JV partner - it's only real business is managing it's debt payments and capital calls to and cash distributions from Borealis - basically this to me means that GGNs employees are probably in truth paid by Borealis by and large, so their salaries won't be much of a burn going forward (this of course is my theory and remains to be seen in the details). Even with great success at Borealis over the coming months - I'm not expecting they could cover the 620k a month they will need to cover debt service. So basically, it seems to me we still need a white knight to bridge the gap. But stepping back and asking myself if I would have put in new money before this deal at any price - no way - they needed 1.4 mm a month before and that didn't even address the 4 mm in payables or the new working capital that Borealis apparently needed. Basically, I think they had to take this very hard deal in order to get a little more new money. Glass half empty - they probably need to raise a little more money to make this work. Glass half full - it was totally hopeless before, the share price was telling us that, but there is a chance at something higher than 6 cents at some point a year or two out now. Coulda, shoulda, woulda sold all my shares a few months ago. GD my blinding lust for gold.