Replies to post #45293 on Mexus Gold US (MXSG)

[gitreal]

I wonder if continued operation of the mine would be a condition?

No. First of all, proving that the mine is operating is a gray area....what defines "operating". Production of gold? Mining and stockpiling ore? Having a watchman on duty? It would be difficult to define.

Secondly, toxic lenders don't really have an interest in things like "operations". They make money no matter what, because of the discounted conversion rates.

But they do care about maintaining compliance with the SEC filing requirements because of potential suspensions and the like. Mexus is now delinquent, so it will be interesting to see what happens....

[1manband]

I'm curious what committments the comapny has to keep to the lender as part of the loan terms. I'm pretty sure mainting SEC complionace with filings and deadlines is part of it.

Yes, it always is because the toxic lenders depend upon Rule 144 to convert and sell the underlying common shares. When the company terminates their SEC registration, Rule 144 is much more difficult to use. That is why toxic lenders are quick with the breach of contract lawsuits in Federal Court when a borrower is no longer an SEC registrant.

With Mexus now delinquent on their 10-K filing, they are also in default of their contractual obligations to the toxic lenders, as Rule 144 is not available for delinquent filers. That is a problem for both Mexus and the lenders, as the lenders can't sell what they have, and Mexus is unable to borrow more to keep the lights on.

The end is getting closer....fast.