James,
What on earth are you talking about? Why would MPV issue 30 million shares @ $10 to finance mine construction?
What part of the word "zero" don't you understand?
Here, I'm going to make this easy for you. First, click on the link below:
mountainprovince.com
2) Now scroll down the web page, until you reach the final entry of the diagram that says " Spend $0 on Construction" under the MPV Group heading.
It's right beside the entry that reads "Construction of Mine, Commence Production" under the heading De Beers!
You see James, this is how De Beers earns the right to 60% of the project, instead of just 55% at the end of feasibility. The additional 5% interest in the project earned by De Beers comes about because they are, quote, "solely responsible for the financing of the exploration, development, permitting and construction of the project without recource to Mountain Province's balance sheet." (read paragraph under the heading Funding).
So, that's what MPV is going to spend on construction James; "$0", nada, zip, zilch, nothing...or for those who still can't seem to get the message, ZERO!
De Beers will finance construction, and MPV will pay back those construction costs at 4% + LIBOR(currently 5.27%) = 9.27%, compounded annually.
These payments will be deducted from MPV's paycheck each and every week, from the diamond sales of De Beers.
And now, James, you know why its best not to finance your mine construction with a credit card!
-B- |
