RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:more insider tradesphilb316 wrote:
Yep, you're probably bang on - just selling enough to keep the lights on, while they wait for this (quote from NR) to kick in (imminently):
"Nuinsco can elect, following recovery of capital costs by Victory Nickel, to participate in net cash flows from the sale of frac sand through a net cash flow-sharing formula and thereby obtain a non-dilutive income stream to the Company."
March 26 2013 News release ]
TORONTO, I dug up this old news release. Sweet deal. I loan you $1.0 million but in return I have the option to get back a min $7.5 million to a max of $10.0 million. ."[/quote]
ONTARIO--(Marketwire - March 26, 2013) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) (www.nuinsco.ca) today announced that it has entered into a loan agreement (the "Loan Agreement") to provide Victory Nickel Inc. ("Victory Nickel") with a secured loan facility of up to $3.0 million (the "Loan"). The Loan bears interest at 12% per annum, payable quarterly in arrears, and matures on January 31, 2015. Nuinsco has advanced $1 million of the Loan to be used for general corporate purposes by Victory Nickel. The balance of available funds are to be used to fund capital expenditures relating to the Seven Persons frac sand plant (the "7P Plant") located southwest of Medicine Hat, Alberta which Victory Nickel has agreed to purchase subject to certain conditions (see Victory Nickel news release dated January 9, 2013). Frac sand is a rare, high-value material widely used in the oil and gas industry to increase flow to the wellhead. Frac sand and fluid are pumped down a well to open fractures in the subsurface rocks and thus create a passageway for oil and gas to flow freely from the reservoir to the well. At Nuinsco's option and under certain circumstances, Nuinsco can elect to receive prepayment of $1.0 million of the Loan from the proceeds of an option payment due from a prior sale of a property and payable in periodic instalments through August 2014. Prior to June 1, 2014, Nuinsco has the right to convert the outstanding balance of the Loan into a participating interest (the "Conversion") whereby Nuinsco is entitled to receive a share of cash flows earned from the sale of frac sand from the 7P Plant. Nuinsco's participation is capped at $10 million, with a minimum of $7.5 million, and is subject to adjustment under certain circumstances. On Conversion, the Loan would be considered paid in full. Nuinsco has also agreed to backstop an equity issue, if any is undertaken by Victory Nickel, with cash or by converting a portion of the Loan into shares, at Nuinsco's option to an amount up to $1.5 million under certain circumstances. In addition to the cash interest payments, Victory Nickel will pay to Nuinsco an arrangement fee of up to $300,000, depending on the amount of drawdown, plus a commitment fee of 1.5% per annum on unadvanced balances, both payable in shares. Read more at https://www.stockhouse.com/companies/bullboard/t.nwi/nuinsco-resources-limited#QhyPrwRHm7wACmDt.99