While this agreement may be a better deal (lower discount to market price, no ability to refuse a put) my point is that it is not by any means a good deal, either for the company or its shareholders. Under prevailing conditions, the limitations on put quantity and the limitation that one put must close before another can be submitted mean that it does not provide a sufficient funding stream for the construction of the new plant. It will require that LSTG economize rather considerably if the KVM agreement is to be an adequate source of funds for ordinary operating expenses. Absent any revenues, it is certainly better than nothing.
As you have correctly pointed out, IF revenues from operations begin to show up, the stock price and trading volume will likely rise quite a bit, and this financing will look much better. There is no news from LSTG which would make me think revenues from operations are going to show up any time soon. In fact there is no actual mining news from LSTG at all. I think your comments make my point: Without revenues from operations, this KVM investment agreement is not something I can get excited about. With revenues, it will be more helpful.
If the kind of revenues from the tailings project that several of us have estimated are possible do begin to show up, this KVM financing may be moot. Makes me wonder why LSTG management is spending its time arranging payday loans when it should be on the ground in Mexico pushing its material thru the Government plant.
