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Strategies & Market Trends : Ride the Tiger with CD

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To: stuffbug who wrote (224221)	1/18/2013 11:30:45 PM
From: SwampDogg	Read Replies (1) of 312346

Does not seem to be any mention in the NR of what happens to the debt already drawn. No doubt that the lender sees the royalties as cash flow for the loans. Will not want the splitting of assets so that line is going to have to be repaid or this might not fly. Guess that is where the legal advice comes in. They must be aware of this but this might not be so easy. Lender is not going to just let them move the debt over to a lower capitalized spin off. At the same time the lender will want to be first in line on the mine so either this does not fly or the company has to pay it off. goldenpredator.com Clearly a sign of strife in the Yuckon. Why not structure the deal more like PG did with the parent owning the majority shares of a royalty spinco? Royalty gets higher valuation and then shares in the royalty may be sold to finance development. Seems backwards IMO. More news to follow on this one no doubt.

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