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Gold/Mining/Energy : Royal Oak-RYO

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To: MiamiMike who wrote (769)	3/19/1998 11:06:00 PM
From: Bill Jackson	Read Replies (2) of 1706

What you say is doable if the currency is acceptable(RYO shares) and the dilution is acceptable RYO shareholders. Right now to get $85 million you would spend 85 million shares and that would be around 30-35% dilution, a bitter pill, but better that no pill(brokeruptcy) One problem is that if RYO bit on a few other companies shares she would get outbid by others with better currency (ABX/TEK/PDG/?? shares or cash) So it is no easy exercise to get ownership for (near) worthless paper. When RYO flew high the had a strong currency, not now though. She will have to get a lender of last resort and allow some warrants at todays prices equal to the loan as a risk fee. After all they risk total loss if RYO folds, and not having to pay interst will help RYO recover and this makes the warrants acceptable. The trouble with vulture lenders is they extract an onerous fee(in warrants etc) but they are just at the edge of the cliff. Will the BC Gov't assume that Mantle??, they might act as a guarantor so that the lender of last resort will be comforted and give better terms. So it is politically doable. After all it is the BC gov'ts fault RYO is in this problem, so they do have a duty(WIndy Craggy) Bill

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