Who said the $ 16 million would be raised from
504 sales ? Or, for that matter, how much of the
price has already been paid ?
I said that no sales of stock would occur that
hurt the current shareholders. Normal operating
funds, or building funds for the start of the
mines, could be raised from 504 sales. This is
a totally reasonable business plan, and no-one
could complain about those sales.
I would imagine that the payments over 15 years
would come from the mine income, not from sales
of 504 shares. NOTE : THE PAYMENTS ARE OVER 15
YEARS...NOT 1 YEAR. So, current shareholders would
not be whacked for the full amount in 1 year, but
over 15 years. Much more manageable, and not a
heavy burden.
From what I have been able to gather about the
price of gold claims / land on War Eagle,
GoldCorp is charging Silver Falcon a base usage
rate of about 6.6 %/yr interest ( on the value of
the underlying land ) over 15 years for the rights
to mine the properties.
This amount of interest is in-line with other
types of mortgages or borrowing costs, and certainly
only covers the lost value of the dollar due to
inflation over the term of the agreement.
GoldCorp's profit would come from the 15 % share
they hold in the total production by Silver Falcon
on the claims (vs the 85 % share held by Silver Falcon).
So, how you got the idea that Silver Falcon was
going to raise $ 16 million by selling 504 shares,
is beyond me.
