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Metanor Resources MEAOD

Metanor Resources Inc is engaged in the production and sale of gold as well as acquisition, exploration, and development of mining properties. It projects include the Moroy Project and Barry project among others.


OTCPK:MEAOD - Post by User

Comment by mstettleron Nov 03, 2016 1:46pm
143 Views
Post# 25421016

RE:$20M cash flow guarantee to sandstorm

RE:$20M cash flow guarantee to sandstorm
Jmay14 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.
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