Some have cast suspicions on these First Nations contracts, BUT:
(1) They are set up so that payments are according to production. G 8 receives $740,000 for every licensing fee (which must come with a completed technical report), a percentage from the building cost (Ed Kroeker said 15%) and ongoing royalties from completed environmental centers. No production = no pay.
(2) Golden Bear is responsible for raising the finances BUT, according to the Licensing Agreement, intends to raise some of the money from “Federal, Provincial and Tribal funding programs that are only available to First Nations” Some of this money may be “government forgiveable loans.” Thus failure to complete the contract could entail legal complications with the Federal and Provincial governments, as well as First Nations community. G 8 would be foolish to take the risk unless they are sincere.
(3) Most of G 8’s work is finished once the licensing contract is complete. According to the licensing agreement, HDR provides “feasibility studies and technical reports ... construction management consulting services” etc to Golden Bear. HDR, rather than G 8, will be carrying the ball when it comes to building these environmental centers. This company has a stellar record of completed projects, which includes engineering for over 6,000 mw of wind power and more than 10% of the solid wastes produced in the USA. There is no question of HDR’s being able to complete this project and it would be pointless for G 8 to turn down an opportunity of profiting from someone else’s labor.
(4) G 8 has a great deal more invested in this venture than ordinary stockholders: Not only is 51% of the stock in their hands, much of the company’s mounting debt appears to be unpaid bills to the various consultants and financiers. (Roughly 10% of that mentioned in the 2007 year end was owed to Rene Branconnier alone.) They will reap millions if this venture succeeds and have a great deal to lose if it fails.
G projects
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