3 months?9 Dec 2010 17:13
A loan that could be rigged to default
As I mentioned, CNMIM hold warrants and two places on the board of Kryso. It will lose the warrants and one of the board places unless it uses its ‘best endeavours’ over the next three months to help Kryso get the finance needed to build the mine. Although ‘best endeavours’ may sound woolly, it is enforceable under British law. It is not something that CNMIM can simply ignore.
So over the next three months Kryso is expecting CNMIM to introduce it to a number of potential Chinese lenders. That sounds reasonable enough, but there is a twist. CNMIM sits of a cash pile of $2.5bn and for the greater good of the motherland is under instructions to finance overseas mining ventures. So it would prefer to lend Kryso its own money.
does this mean we should have good news withing 3 months???