Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Core Gold Inc -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (1868)	12/3/2017 9:40:33 PM
From: pstad60	Read Replies (1) \| Respond to of 2131

Hello Rocket Red, Valid point, however, that information has been posted in the notes of every financial statement for the past year. Nothing new there. The company has been going through a restructuring for the past 18 months, I'm sure you are well aware of the situation if you've followed this forum at all. The company has addressed the debt outstanding, and has negotiated a repayment schedule announced back in June 2017 .... Message 31135846 Resolution of working capital issue of Elipe S.A. Elipe S.A. ("Elipe"), the Company's wholly owned subsidiary, has experienced financial distress due to the level of payables and other liabilities (which includes, among other things, supplier payables, government payables and payroll remittances). The Company has been in extensive negotiations with the liability holder's government appointed representative (the "Representative") as part of its commitment to normalizing payables and stabilizing operations. If the Company does not rectify the situation in a timely manner, there is a risk that the Representative may take legal action against Elipe which may involve, among other things, dispositions of assets in order to fund outstanding liabilities. Since the change in management in September 2016 (see press release on September 12, 2016), new management has focused its efforts to rectify the situation with the Representative. On June 1, 2017, the Company signed a payment plan contract ("Payment Plan Contract") with the Representative to improve Elipe's financial condition. The Payment Plan Contract allows the Company's Ecuadorian subsidiary to continue to conduct its mining operations and postpone any actions by the Representative against its assets provided Elipe funds various outstanding liabilities on the following schedule: Date Payment (US$) Initiation of Payment Plan Contract - $100,000 (paid) July - August 2017 - $500,000 per month September - October 2017 - $550,000 per month November - December 2017 - $600,000 per month January - March 2018 - $650,000 per month April - May 2018 - $700,000 per month June 2018 - $3,800,000 Total - $10,550,000 The Company believes that the payment schedule incorporated into the Payment Plan Contract is manageable based on its production and operational forecasts. And , the company issued a news release on Friday that they have successfully negotiated a $15 million debt facility. Interest rate is somewhat high, probably a reflection of the inherent risk still in this company. The $4.5 million VERTEX promissory notes and convertible will be rolled into the debt facility. The fact that the company was able to negotiate a debt facility at all is significant. I would assume that there was due diligence done prior to Investa agreeing to financing it, which shows the company presents acceptable risk. Once the company upgrades the processing plant to 2000 tpd capacity, It's not too hard to calculate the impact that the substantial increase in production ounces will have on the bottom line. What are your thoughts on the high grade trench sample results ? They compare very well to those of Aurelian's initial trench samples from 2005 for the Fruta Del Norte deposit . Best of luck .