Galway Resources Ltd V.GWY

concessions

[neinstein]

this is good. really good. i still look forward to discovering under what terms and/or guarantees BMO decided to lend a colombian gold junior with no announced resource estimate $10 million dollars at prime plus 50 basis points.  Something else is going on.

[SchiffKnowsBest]

My thought for getting prime plus a half is they know cashflow is coming in from somewhere (possibly spinout of California to Batista), and it's contingent on that happening.  As for the whole company being sold, it could very well be that too.  It has to be something along those lines.

[Red5Luke]

The banks are sitting on cash like a hungry dog with a bone and aren't lending unless there is some security and ROI.  So to lend to a Sth American junior miner (high unusual) and not require any security to back up the 10 mill loan definitely screams something BIG is happening.  BMO has to know a sale in some form is in motion and the 10 mill is required to facilitate moving

[fisherman8]

Red5Luke; You are absolutely correct!  For a bank to money to to a junior - wow. Note there was no repayment terms. If volume does not increase, I will be shocked. I would but more GWY, but have a over weight position.

[neinstein]

there is no chance BMO lent money on a 43-101, regardless of what it said. they have security somewhere. my bet is that there is signed deal, with BMO having further security if the deal falls through.  the money was clearly lent so they could finalize the purchase of concessions.  they also must know exactly what's about to happen with these concessions.