RECAP:
Funding NEWS last 8 weeks:
Business Wire - May 12, 1999 08:29
EAST PEORIA, Ill.--(BUSINESS WIRE)--May 12, 1999--Maxam Gold Corporation announced today that it is entering into an agreement for funding in the amount of $30 million. The closing and initial draw of $10 million on this commitment is scheduled for July 1, 1999. The balance will be drawn, as needed, over the next 12 months.
The funding is secured with the mineable open pit ore reserves on the four Peoria Seven claims, plus 50 million common shares of Maxam Gold Corporation; 33 million shares pledged by Maxam, and 17 million shares pledged by a major shareholder.
TODAY ala RM:
learned what the delay is about.
1. Maxam insists on the funding source disclosing the source of the money. To this date the funding source has not disclosed the money source. I don't think anybody would be thrilled if the funding came from Columbia.
2. The funding source wants all the collateral put up against the first $10MM draw. Maxam wants to only put up the fractional amount based on the draw.
Maxam is protecting our interests
The funds, in addition to immediate capital requirements, enables Maxam Gold Corporation to proceed with its construction plan for the 10,000 Tons per day mine/mill operation on the Peoria Seven site, and to conduct further exploration on the Peoria Seven and other properties.
The funds are committed to be re-paid from production over 10-years, commencing no later than May 1, 2002
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MY OPINIONs ONLY:
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Thus: <<plus 50 million common shares of Maxam >> At say 20 cents that is the $10 Million Dollars. So, there would be no risk.
Maybe I am off base here, we are talking partnership, I say do it and add a clause for NO DRAW DOWN for 2 years as by that time we will have a mine built and that is all we need for this quarter to start the SCALE UP, even 4 months down the road with the money we could have :
1) The Pilot Plant WE OWN and allready BUILT in Tucson moved to Gila Bend. ( Thus, we can proove the process to anyONE interested)( Multi Locations and MULTI NEW MORE FAVORABLE deals guarranteed, when bankers tour and see the metals piloted ...the Pilot Whale WILL become a GREAT WHITE SHARK! I am talkinh transformation here, money costs money and WE NEED WHAT the deal could do, write off P-7 and go for ALL the TEN with the process. JMHO, Just do it.
2) If number one is too complicated, move the pilot plant on begged and borrwoed funds or sell ANYthing of corporate value...and restart the Max Cooley new lab that is ready to go, next to the Pilot Plant.
STRESS- VERY MUCH STRESSED IF THE FUNDERS WILL NOT AGREE to escrow of 2 years for these shares ...I say WE WALK and walk now...FAST and AWAY FROM THESE DEAL CHANGERS!
This will bring in new offers, I do suspect. OR THE SAME GUY will comply to reasonablness or be shown to be ...not reasonable, not businesslike, not a person to be trusted with any UPMOST GOOD FAITH.
MHO, Chucka |
