Legend, my mistake. You are correct. It is the long term debt that is due by May 25, 2011, not the preferreds. I was assuming (silly me) that only the $8,227,758 was to be converted into common equity at $.11 per share.

It is actually, as you point out, the long term debt of $17,497,777 that comes due on May 25, 2011. My apology.

So lets see, if current minority shareholders own 49% of the current weighted average common shares outstanding of 167,108,458, and we convert the $17,497,777 (not assuming that further compounded interest gets added) at $.11 per share, thats a further +/- 159,000,000 shares issued to Jilin.

That drops the minority shareholders interest to about the 25% level from 49%.

Before the Jilin deadline of May 25, 2011 there is a further $11,599,524 (Note 9.) owed till that date. These are accruing at 8% but I'll assume that they continue to get extended.

So then we still have the $8,227,758 of preferred shares outstanding plus those accrued dividends of $1,422,027 on top of that. This too is compounding at 8% and is also convertible into common shares at $.11 per share.

Bottom line is that is a lot of pure nickel that needs to be processed, not including the current expenses of payroll etc, and any capital expenditures.