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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (71404)	6/9/2001 7:25:25 PM
From: goldsheet	Respond to of 116778

Just going by a gold loan I was familar with. Canyon Resources obtained a $US25M loan by putting up 65,425 ounces: "On December 6, 1995, the Company's wholly-owned subsidiary, CR Briggs Corporation, obtained a $34.0 million loan facility to finance the capital requirements of mine construction and working capital for its Briggs Mine in California. The facility was provided by a syndicate of three banks, and initially included three tranches; a $25 million gold loan; a $5 million cash loan; and a $4 million cost overrun facility. Subject to certain conditions, the Company has the right to convert loans of one type into loans of another type. On December 27, 1995, drawing commenced on the facility and $25.0 million principal in the form of a gold loan (monetized at $388.05 per ounce, or 64,425 ounces) and $1.0 million principal as a dollar loan were drawn." One can find more of the gory details in their 10K. I just grabbed this quick quote FYI. One interesting thing was as gold prices dropped Canyon went on the market and bought gold at under $388.05 (the monetized amount) and pre-paid the loan, booking a $1M gain in 1998, and another $3M in 1999. It was to their advantage to pay back in gold instead of dollars, since gold was cheaper.