Replies to post #7184 on Kentucky Energy (fka QMIN)

[Pedro2004]

I follow what is written in the Disclosure Statement. Which reads:

In connection therewith, Gwenco granted the investor a
royalty on fifty percent of Gwenco's gross profits generated from coal mining at Gwenco's leased mine.

Gwenco guaranteed payment on a note in the amount of $300,000 made to Scott
Whitson. This note was secured by 50% of the outstanding capital stock of Gwenco. The
debt required 4 annual payments of approximately $75,000 plus interest. As of December
31, 2005, Quest and Gwenco were in default.



As far as I'm concerned, the Disclosure Statement is correct.


It is you people that say the above is not material.
And, if so, there needs to be clarity before I decide to get back in.

[aharfo56]

I agree for the clarity request on the royalty for 50% of GWENCO's profits...how much of a royalty on 50% of them? Obviously it is not the full 50% and does not state so (I remember reading a discussion about this, not sure it was resolved...), but it would be nice to know what kind of royalty is being paid. Also, it would be important to know how many outstanding shares there are! It seems like the company doesn't want to release that for a reason...inserting additional shares into the marketplace to procure additional cashflow? If so, I think that would be understandable for right now until full production resumes and income is substantial enough to be sustainable & produce profit, but I for one think shareholders have a right to know what is going on!