I'm not Spiny, but here's my answers to the questions.

1). Who says they won't generate cash to pay on the loans by the end of the year? But if they don't, they can get a new loan or extend the term. They have not seemed to have any problem getting financing yet (where they have spent some of the money is another question.) They also might get bought out before then.

2) Financing at 8%? Maybe.

2 a) It might not seem as risky to someone who studied the history of WEM. They can even write into the loan a condition that the financing is to be used for drilling related activities.

3) If the person loaning the money is already a major shareholder, who believes this stock will skyrocket after drilling results are obtained (based on historical data), there is a much greater reward for them than merely the 8%.