TSX:LSG.DB - Post by User
Post by
yoda2on Dec 16, 2013 9:17pm
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Post# 22012000
Is it Expensive? Sprott looks after Sprott
Is it Expensive? Sprott looks after Sprott Note that there are some costs to this change with Sprott:
The modification fee $350,000
A new(?) rollover fee of 2% as of Dec 2014 (2%of $30 million or of 1% $20 million) -- $600,000
Continuing to pay 9.75% interest compounded monthly for 23 months longer
AND increasing the minimum return on the Gold by 50% from 5% to 7.5%. It is not clear how much this will cost and whether it applies to the total initial Gold loan of $35 million or the currently remaining balance.
It looks expensive but more importantly is it a sign of desperation. i