Golden Dawn Minerals New GDMRF

Lind loan in default...why?

[oldvsetrader]

Reading the financials, GOM stopped paying the loan payments on the 1.2 million Lind loan and is in default. They made an agreement after this that the whole amount +- 1 million is now due in full on April 30! Why would they default on a loan that has security of all the company assets? Are they that short of money that they could not pay the most important item to keep the company from losing its assets? The RIVI loan of over 5 million is now subject to 16% interest as they did not get into production per the stated agreement dates.
What keeps me up at night, as I am a shareholder, is the coming capital needed and can they raise it? Gom needs funding for the following  1. 1 million in 2 weeks for the Lind Loan 2. 3 million for mill startup to production 3. they spent the $2 million raised in flow-thru that is only to be spent on exploration for other uses and the financials state they need to raise and spend $2 million for exploration this year to satisfy the CRA rules for flow through. 4. monthly burn rate of 200-300 k
5. Drilling program about to start on the Gold Crown needs to be paid for 6. current payables
That is a big order! It would be nice to know how the company plans on raising this without diluting the heck out of the company. Convertable debt would be better for us shareholders, but can they raise that much? All the assets of the company are encumbered so a new lender would have no security available as Lind and RIVI have it all covered. I hope someone smarter than me can explain how this will play out as it is tough road ahead. If they can get through this then a producing gold miner will be doing well in the good gold environment. fingers crossed and hoping.