Golkor Inc (GKOR)

[BigOwl47]

I seem to recall that Financiers offer financing based on performance. In other words, if KATX accomplishes drilling a certain number of holes by X date then they will have met the "performance" part of the contract. As I understand it, the financiers are expecting KATX to complete certain contractual requirements on or by a set date. I do not believe, as is being insinuated, that the finance agreement is solely based on "Results of the drilling". As long as KATX is Performing the actions prescribed by the contract, the financiers money will keep flowing.

Keep in mind that it is just as likely that KATX / BVIG can hit the mineral motherload on the very last drilling of the very last property and still make the financiers a profit. I do not believe the financier's contract with KATX is not solely based on Drill Results.

Also, the majority of the financiers I have dealt with are invested in many different potential profit making contracts, so if one junior explorer comes up with dry holes after all the drilling is done, the financiers will write off the loss and move on. That is the risk that they take by financing a junior exploration company. There are no guarantees for the financiers or the investors (like us) for that matter. The financiers are betting that Ken and company knows what they are doing. That is why they invested. They do expect to make a profit, but it is not guaranteed.