GCM contactI e-mailed Serafino on Saturday and as usual he responded almost immediately . As usual , with this being such a big share price trashing deal , nobody else has contacted him . People prefer to put their faith in conspiracy theories .
It was a long e-mail and I won`t share my personal business with people on a public board . But to sum things up , he said " I`m damned if I do and damned if I don`t " . This is a small company going ahead with an emormous project . GCM would never have the money on their own and keep control of the company Quote " we have $35 million in cash reserves that would be immediately gone , we would have to equity finance $250 million and bury present shareholders , we would have to take on $200 million of bank debt and put up all our assets as security . Any missteps and the banks would own Segovia . "
Bluenose was chosen because the principals are already involved with GCM and will be buying into the financing . The people there are " solid " and have experience in financing deals . The management at Gran Colombia already have plenty on their plate without taking on a really big project . Frank Guistra is a minor player in Bluenose and will be diluted right out of the picture .
There is no other way forward without ransoming the company . This way GCM keeps control and has none of the liabilty .
Right now Serafino is in Europe working on the finances with European investors . He is also raising money for the Gran Colombia Foundation which along with his own million dollar contribution is building a high school in Colombia .
Anybody who doesn`t think this is the best of the gold companies should really move on .