Colorado Goldfields Inc. (fka CGFI)

[lesgetrich]

Regarding the convertible debt and credit line, from my post # 61475 and the last 10Q...

"The Company continues to explore sources of additional financing to satisfy its current operating requirements. During the fiscal year ended
August 31, 2012 and through November 30, 2012, the Company entered into funding arrangements with an institutional investor (the “Delaware
Partnership Investor”), under which the Delaware Partnership Investor has provided convertible debt financing to the Company of $429,000,
($52,000 during the three months ended November 30, 2012) (Note 7).
During the fiscal year ended August 31, 2012 and through November 30, 2012, the Company also entered into three funding arrangements for a
total of $153,000 ($53,000 during the three months ended November 30, 2012), with a group of New York private investors in the form of
convertible notes (Note 7)."

If I'm reading this right, as of the last quarter, the company had an open line of credit with these investors for $429,000-$52,000 + $153,000-$53,000. That's about $477,000 available as of Nov. 30 2012. That explains why the company stated that they anticipated enough funding from these investors to open the mill. At $.02/share that would indicate about 24 million shares (some of which have probably already been issued since November). Except for completing the funding on the mines we're still looking at closer to 100,000,000 OS before the mill opens rather than 200,000,000. As they get closer to opening, they can drive up the stock price with well timed press releases and thus reduce the cost/dilution. Doing so prematurely would just lead to bubbles with the price coming back down. IMO this would be a reasonable plan.

Obviously, we haven't held at $.02/share so there has been more dilution than I predicted. However, we were generally above $.02/share through January and above $.01 share through February. At the end of February, our OS was reported to be over 100 million. So let's assume that 30 million shares were issued subsequent to the 10Q and that half of those represented a discount. that leaves about 15 million shares worth of revenue to CGFI. Let's assume that the average pps was about $.015 share. That would represent about $225,000 minimum that CGFI would have raised. Let's say that since then we've seen another 20 million shares issued and sold at around $.006 and that 10 million of those again represent a discount, CGFI would have raised another $60,000. Consequently, I estimate that they already have raised around $300,000