Replies to post #21314 on Sierra Resource Group Inc. (fka SIRG)

[Actuate]

SIRG has all of 6 months left afloat.

SIRG now has to provide a deed of trust to Grand View Ventures for their 80% of the Chloride Copper Mine, and that only gives them an additional 6 months to pay their notes to Grand View Ventures.

There is also the fact that SIRG is not "anticipating" the Finding of No Significant Impact certificate until April 15, 2013.

That leaves approximately 3 months for SIRG to find funding that will cover the greater than $330K it owes to Grand View Ventures.

Over the next six months SIRG must make all payments to all of the companies that have loaned them money, including but not limited to FOGO ($200K note). Seeing as SIRG couldn't even pay the interest on the Grand View note or for that matter even follow any of the guidelines set forth by the note, it is highly unlikely that they will be able to make payments on the Fogo note.

Once they default, they will no longer have the 80% of the Copper Chloride mine, and what do they have left then?

Effective January 10, 2012 the Company has entered into a Forbearance Agreement with Grand View (the “Agreement”). In consideration for entering into the Agreement, the Company has agreed that it shall perform (or agree to the terms of) the following material requirements: (a) the May Note shall bear an 18% interest rate from November 1, 2012 forward, (b) a deed of trust on the Company’s 80% interest in the Chloride Copper Mine shall be filed to secure the February and May Notes

In consideration for entering into the agreement, Grand View has agreed to the following material terms:;(i) Grand View waives any defaults and breaches of the Company or all dates prior to the date of the Forbearance Agreement, (ii) both the February and May Notes are amended to extend the maturity date of each to July 15, 2013, and (iii) revisions to the February and May Securities Purchase Agreements and February Warrant modify the calculation of anti-dilution shares.

Extension of the May Note and February Note. Sections 1.a.i of both the February Note and the May Note shall be amended as set forth in Exhibit C to state that the Maturity Date is July 15, 2013 or the BLM Extension Date (as defined below), whichever is later. To the extent that the date the Bureau of Land Management (the “ BLM ” ) issues its Finding of No Significant Impact certificate (the “ FONSI Date ”) for the Company (currently scheduled for April 15, 2013)

In connection with, and as condition precedent to the extension of the Maturity Dates of the February Note and the May Note detailed in Section 5.b. above, Sections 4 of both the February Note and the May Note shall be amended as set forth in Exhibit C to state that an additional Event of Default shall be “the failure to pay interest or principal when due on any outstanding obligation of the Company (if such outstanding obligation is greater than $10,000) when due including but not limited to the FOGO, Inc. note or any Asher Enterprises, Inc. note, unless such failure is waived in writing by the holder of such obligation. Holder shall be able to rely on the terms of such obligations as provided to Holder previously or any of the Company’s SEC filings to determine when the Company is obligated to make such interest and principal payments and may presume such payments were not made or such obligations were not modified unless and until delivery of reasonable written evidence to Holder to the contrary.”

http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9021095

JMHO