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cdma01

05/23/13 6:57 PM

#497 RE: Blindsquirrel #496

Well actually they likely could only get a loan from their shareholder who gets paid a lot of interest to reduce their risk. Non one else would want to lend them the money they need.

Ordinary shareholders have no such luxury and bear the brunt of the lack of revenue and little progress on the reserve front.

And who knows if they will have to go back for more money.

This is why the lender is in the driver's seat. They are taking on risk and a bigger bite out of Sutter each time. At some point, they will be in a position to grab the rest for breadcrumbs if they think they have a chance to discover much more gold.

If they don't then they just demand their money back. Either way, it is a win win for the lender/controlling shareholder, while the small shareholders are holding the bag.