Mexus Gold US (MXSG)

[Belgie24]

I'm going to take one more try with you, Don, in hopes that it will make a difference.

It's the convertible notes that are at the root of the problem. Mexus took out the loans and defaulted, mostly to pay for San Felix. Now they are convertible into shares at a 60% discount to the current price, so they are not selling at a loss, they are making 50-60% profit with every share they convert and sell. To make matters worse, there may be no floor on the conversion price, meaning the lower the price goes, the more shares they get at the discounted conversion price. Worst case, they drive to shares to near zero, and Mexus is in bankruptcy.

Thus the relentless selling ever since the date when conversion was possible.

Someone, and you come to mind, has to discuss this possibility with Paul Thompson. Every dollar of the sold equipment should be put towards paying off these defaulted loans, because the alternative is not going to be pretty, and you and Paul have more to lose than anyone.

I'd really like to get to the point where Argonaut fulfills the contract and we produce at Rancho, but we have to get past this hurdle soon or it won't matter.