RE: Sales contracts. If there is no sales contract, how is Cline going to finance it's day to day operations plus capital expenditures going forward....CMK cannot just rely on money being pumped into the company whenever they have their backs against the wall, plus I believe the LOI is contingent upon Cline securing a sales contract. The reserves of 600+ million tons are not being mined and sold. What good would this be to a new investor coming in to fund Cline.......if the an end user on the other hand is investing in Cline then the coal is sold automatically to that particular user, however, if another coal mine or investment house comes in they need to see sales signed and coal being shipped.
The $35 million is needed to restart production the last time I had a conversation with management, and this amount is also needed to sustain the mine for the next 3 years if no sales contract is signed which than the Marrett plan will kick in.
There is value in Cline, otherwise you would have not had a LOI signed IMO. Now the question is if Cline can also sign a reasonable sales contract and even start to sell only 500k to start, this gives advantage to Cline when the recap. deal is signed. An operating mine is worth way more than a non-producing mine!