Replies to post #62752 on Colorado Goldfields Inc. (fka CGFI)

[lesgetrich]

From the last 10Q...

On December 13, 2012, the Company issued two convertible notes for $62,500 and $22,500 respectively under a funding arrangement with a lower Manhattan based Investor Group.  The notes bear interest at 12% per annum.  The $62,500 note, whose proceeds were used to reduce the mill mortgage, matures immediately and is convertible into shares of Class A stock.  The $22,500 note matures on August 4, 2013.  Both notes are convertible at any time from the date of the note’s execution, at the option of the holder, into shares of Class A common stock of the Company at a conversion rate of 45% of the lowest volume-weighted average closing prices of the Company’s Class A common stock for the five trading days immediately prior to the date a conversion notice is received by the Company.

$22,500 + $62,500 = $85,000 raised by CGFI. Never reported on any 8K. Obviously they can do this and DTC and reporting requirements are not a factor. At 45% discount, this would convert to about $188,000 worth of shares on day of conversion. Keep in mind they would only have to sell $85k worth to break even. They could let some amount ride and hope the company eventually succeeds. It seems to me, however, that the company could do a lot better by simply doing a public offering.

Again, there may still not be a final resolution of March 6 deadlines, hence no 8k required.