Woulfe Mining Corp WFEMF

Couple of Things

[CJHallee]

Upon re-reading the news release a couple of times there are a couple of things I have questions about:

 

1)  Term of the loan is 12 years.  The payback period of the project was just over 2 years so why such a long term? (Perhaps that was out of WOF's control as I would assume the bank would want as long a term as possible); and

2)  The loan is for $104M.  Combine that with the $70M from IMC and the potential $20M in debentures and that puts the total amount of financing at $194M.  The total capital cost was around $150M with a contingency built in with the potential for costs to decrease.  Why do we need this much?  I'm wondering if something else might not be at play such as the production capacity is being expanded (i.e., 600,000 to 800,000 mtu's per year instead of 400,000 mtu's).  Thoughts anyone?

[clk_vested]

A theoretical payback of 2 years does not mean that you plan your cashflow to be 100% loan repayment. They have to fund operations and possible new activities. The interest rate is quite reasonable, so it makes sense to secure it for a longer term. They can then maintain a reasonable float, supported by ongoing revenues, that allows them to pursue opportunities and ongoing operations without

[TechOne]

It is progress and move towards eventual resolution of funding.. But I think market is still looking for other shoe to drop with IMC to put this to rest because that is still hanging out there.. Also raises the question of what happened to the $20m Convert that was still open.. Did they raise any money or is that now cancelled etc.. Clearly, some milestone have now slipped so this needs to be

[biznotstock]

CJ A quote from page 14 of the Tiger Kim presentation: "Up to $170mm CAPEX all secured". Honestly this isn't news...still on page 14 (&16) you could zoom into the presentation and make out some of the terms of the "SENIOR DEBT TERM SHEET SUMMARY". You can clearly make out 12 years under Maturity Date. Other headings include Agent Fees, Facility Type, Lender. Front End

[Bobwins]

In these turbulent times, Woulfe is lucky to have a project that is financeable.  In these kind of times, it is best to get the money first.  The long term is smart.  This is a long term project and the financing should be similar.  I'm sure there will be provisions that will allow early repayment but as someone else suggested, the long term and resulting lower payments