I do not understand short of gold derivitives.  The following is what Jim Sinclair wrote telling you how to tell if a junior miner is at risk.  I do not think this pertains to NOT but would like someone to put my heart at rest.  It seems all financing has been done through private placement but I am not sure.  Can anyone help

 Jim Sinclair says

The answer is dirt simple. If the development loan is non recourse the derivative risk is there for all those that benefit from that loan on that project.

The rules and accounting procedures that apply here are SAS 133 and SAS 138, as well as rule 10B-5.

The question has to be asked correctly.

For the junior exploration and development company or the junior producer:

Dear Chairman of the Audit Committee of the Board of Directors,

I wish to know if project xxxxx’s development loan negotiated for project xxxxx by the major who is your partner was recourse to all and every asset of the major or non recourse to all and every asset of the major, but only recourse to the development project specifically.

Sincerely yours,
Investor

For the major producer:

Dear Chairman of the Audit Committee of the Board of directors:

I wish to know what percentage of development loans you have taken since 1991 that are still outstanding, are non recourse to all and every asset of the company, but simply recourse to the project specific for which the development loan was taken.

Sincerely yours,
Investor

Non recourse equals derivative risk.
Recourse equals no derivative risk.

So there it is. I am now FINISHED with this subject. You now have the knowledge and the tools to take care of yourself. Make sure you do.