Hi Chewy

I think the value of KRY is post shareholder approval. At that stage it becomes a potential target because all the heavy lifting has been done. Any move on KRY will trigger JV partner's 19.9 % buy-in I would think. JV partner isn't paying off the noteholders. They provide a credit facility which KRY accesses and then that amount gets paid down over 5 years upon commencement of production off cash flow. It's actually a very good set-up for us when you think we got no cash with debt. Sure we gave up 2/3 rd's but look what we will get in return - a gravy train for many years.

Permit has to come before July 31st. Equity financing gets done post permit.

Hugo and Venezuela will not embarass their main benefactor.

The only way Hugo can get out of this now is to get China's approval to pass on the deal and Hugo makes KRY an offer it can't refuse so as to maintain 100 % owenership of Las Cristinas for Venezuela. I think he's cornered - he can't refuse the Chinese and even if he does he has to find something of the same value for them while paying out KRY.

No, I think the permit gets issued and the side show of shorting/selling comes to an end in due course.

Fung was smart on this one. Noteholders get taken care of, options to management, no future debt, shareholders will get value post permit, Venezuela gets the mine up and running and Chinese JV partner gets what they want. It's 24 months+ before production so between now and then a side deal will be worked out by the Chinese with the BCV. Who only knows how high gold will be by then. I'm sure GG, NEM, ABX will have a good idea and would have no problem snapping-up KRY for shares.

Anyway, that's my 20 cents.

best of luck.

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