|To the semi-amazement of this humble scribe that ultimate risk taker Sprott has ponied up the dough ... but it sure ain't coming for free.|
"Fire River Gold Corp. has closed the previously announced secured credit facility with Sprott Resource Lending Partnership.
The company received the first drawdown of $1-million on Nov. 15, 2011, and the second and final drawdown of $6.5-million on Dec. 9, 2011. The funds drawn under the credit facility are secured against all of the assets of the company and its subsidiaries. Funds drawn under the credit facility are repayable on or before Nov. 15, 2012, and accrue interest at a fixed rate of 12 per cent per annum."
Forget the so called "equity" here there isn't any left and how long is this swack of cash actually going to last?
Not very if that $ 2.6m monthly cash burn continues and it appears there's little to stop it unless that plant gets shuttered for the winter ... a so called "temporary" shut-down to conserve fuel is right citizens, it needs to be 4 months long and lay off a few excess office staff slugs too.