Drop below $10,000,000 and AOT is done? If I read that rightI assume everyone read that if the kitty drops below $10,000,000 the debtors can take EVERYTHING. That would be one helluva buy considering the amount of money that has been blown or pilferred here.
When they announced the shut down they said there was $15,000,000 in the bank. They didn't want to give a burn rate because there is an amount in print already pffft! At the rate that these guys go through money, how long do you think $5,000,001.00 will last? The way that I understand this is that if these guys burn through $5,000,001.00 before they get financing to continue digging (developing), shareholders will get ZERO.
Let's say that Sprott and other institutions were wagging the dog up until Coori Apu came to the table. Coori Apu paid $45,000,000 at .45 plus warrants (ish or so I think). Then Coori Apu sold their shares into the open market for .45-.85, sat on the profits and warrants (just like whoever bought the next $5,000,000 at .83 did) They probabkly knew full well, like every board member did, that Big Missouri wasn't enough to make it into the PNL on time for the save (Dave takes a powder). Does anyone think that this is a possibility? If so, who are the entities that stand to gain the most from this set up? This is a horrible position for longs. The company can easily run the clock out, make a BS apology, and then walk away with everything they have ALL already taken. Plus, I would bet that if the layers were peeled away, the same people will end up with hundreds of millions of dollars of infrastructure and gold in the ground at less than a penny on the dollar. All this at the expense of shareholders. Does anyone see any merit to this point of view? I hope I'm wrong, but man, this has a crooked stench to it. I cannot see a way out right now. Derek set the stage to save face in another failure when he said something like "if we can't fix this then maybe they aren't the people for the job". Worst case scenario is that tha does not change the fact that THEY have done this either intentionally or ineptly and WE are the people holding the bag. There's a tax loss in here, and that's the only mitigation I can see. Thoughts?