GREY:STTYF - Post by User
Post by
fanofsgon Aug 14, 2013 4:28pm
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Post# 21670531
DH
DH "Donner does not have enough money to pay the cash call. Previous cash calls have exhausted their available funds. The credit facility from Sandstorm is no longer available to Donner because they are in default of the loan agreement.
There is nothing odd going on with the situation. It is unfortunate that Donner is not able to meet its cash calls and may default on the joint venture but in that scenario, Sandstorm does have the option to cure the default and assume the entire 35% interest in Bracemac-McLeod. The challenge for us is that we would have to raise capital in order to assume the joint venture."
I asked DH how much capital would that be: "It will likely take another $10 million to $12 million (including the $4.3 outstanding currently) before the 35% joint venture is generating positive cash flow ."