Saturday, November 12, 2011

Sprott debt for Dummies - Update

November 17, 2011 - The deadline for executing a binding loan agreement has come and gone and there has been no announcement from this Co. A "term sheet" is not a binding contract, something Sprott proved conclusively in BC Supreme Court by getting served its arse in the Aurcana matter. (AUN.v)

Its appearing more and more probable even Sprott has finally woken up to the many problems of this thinly disguised public dope show. WITHOUT that funding this promo is done like dinner and a body can take that to the bank.

On the concentrate front there is undisclosed and unconfirmed word on the street that the material shipped by these flaming geniuses is contaminated with the deadly poison arsenic ... an outcome that, if true, has surely pissed off the refiner greatly. That is a dead rookie mistake that is unforgivable in mining circles and very,very costly to clean-up, forget the extreme expense of reprocessing that concentrate into something saleable.
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In a final, last gasp effort to squeeze the last possible juice outta this lemon before that brick wall of insolvency hits there's NEWS of another round of ultra rock bottom dilution and 12% fully secured cash from mercenary Sprott to tide these free spenders over for a few months, at very most.

This Denmark has reeked since day one and isn't this money spinner SUPPOSED to be whallowing in ridiculously high cash flow by now?
One would suppose so given how Mr. Goodwin has been spewing with gusto about multiple bags of SOMETHING being shipped out of Nixon Fork over the past few months. The undisclosed problem this time out, apparently, is that whatever the hell is in those bags is extremely troublesome to refine and nobody is eager to actually pay for it. This monkey is guessing the complex sulfides at 68% recovery these dopes managed to scratch out after 2 years of trying require extensive and expensive processing to extract any minerals at all.
And guru my behind hole, does not this very space contain the following prophetic brilliance from March 11, 2011 ...

"The additional $7m won't keep this guaranteed white elephant in cash until next spring so ANOTHER dilutive share issue will obviously be required to keep the improbable dream alive, and who will be the next dope to step forward when in excess of $ 15m has been burnt off with zero return possible?"

So o.k. Not just any dopey rube hick dumbarse has stepped into the breech, but massive orge Sprott. Lets assume our ultra brainsmarts, highly degreed SprottTards read this blog and actually know the difference between their very often dead wrong arseholes and a worthless, water filled hole in Alaska.

Sprottites must be assuming FAU will rack the credit to the max before defaulting on November 15, 2012. If we accept this minor leap of faith Sprott would take over the entire smoozle at Nixon Fork, de-facto control FAU, and have roughly 12,000 ozs left in the tailings.

Perhaps not that bad a deal considering they get plenty of dead free FAU shares at rock bottom AND enough time to unload said worthless paper at retail levels as they, naturally, tout the krap out of it.

Fire River Gold is a sickening blueprint on how the public takes it right up the kazoo from those who care not at all, and in that regard provides valuable insight in how to examine ANY Venture deal a body is considering throwing their money away on.