Posted by the cork when I asked a similar question
Tuesday, February 07, 2012 4:17:21 PM
Re: alto10000 post# 1578
Post # of 1581
If they restrict the miners capacity to raise capital through the sale of shares at true market value, they can force the miners to deal with the banks for funding on their (the banks) terms.
That can take the form of horrific interest rates, forward selling of future production at ridiculously low hedged prices, or under other terms so onerous that they cannot be repaid, leading to a default at which point the bank/fund/private equity, owns the mine outright, lock stock and barrel.