OTCPK:MEAOD - Post by User
Comment by
mstettleron Nov 03, 2016 1:46pm
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Post# 25421016
RE:$20M cash flow guarantee to sandstorm
RE:$20M cash flow guarantee to sandstormJmay14 wrote: Hello,
does anyone know how the $20M cash flow guarantee worked ?
sandstorm paid $20M to metanor to obtain right to buy 20% of gold from bachelor at $500/ounce.
was the $20M cash flow guarantee to reimburse the payment by sandstorm ?
also it seems that the actual amount to date is $23M.
thanks
The difference should be due to USD/CAD exchange rates.
The cash flow guarantee is pretty standard. It's basically a guarantee of repayment on the loan. Of course if the company which is obligated becomes insolvent then there is not much that can be done.
Sandstorm had a similar stream on the serra pelada mine - they went belly up but because sandstorm was a holder of debt they retained partial ownership of the project - I can't remember the percentage but seem to recall it was something like 40%.
That was a while ago I as a shareholder (warrant holder actually) got screwed on that one. The warrants still trade off market for domething like .0001 each.