LIBOR plus 2% is a good rate so they are getting this money on good terms on the face of it but then you look at the rate they have to sell their gold (10% discount). Puts things in perspective. Sorta like going in buy a new car and the guy saying he'll give you full value on your trade in (but sticks you for full retail on the new car).
Still they get to participate on any upside on gold (if there is some over the next three years).
If they are paying back 300,000 ounces over three years, i guess they are back to targeting 100,000 ounces + of production per year. Good luck with that.
All in all, fresh money (if they get it, only term sheet status right now) gives them new life.
One new change on the board of directors. Sounds like a member of the old boys club gets rotated in.
Lots of lurky water swirling in the financials with a change in year end and delayed audit results. There will be little clarity for quite a while.
Wait for the gains to peak and then consider selling.
JFF7
It's better to be out wishing you were in than in wishing you were out.
"Markets can remain irrational longer than you can remain solvent". - John Maynard Keynes