The payments are 1 million Euros each year for 3 years. How they come up with the first payment and when it is due are good questions. I haven't had a chance yet to contact the company and ask them. Speculation is just a waste of time at this point.

The other payments could well be made from the proceeds of equity financings at what I hope will be a much better stock price as the price of silver starts to rise. If it doesn't rise then they might default but not a lot is lost considering the circumstances that we are now under. It's a gamble but I think it's a good one and I applaud them for their tenacity.

I'm a gold and silver bug and hold many good quality junior precious metals stocks. Below is an excerpt from the January issue of Mining Speculator. If it's true and SNO can come up with the first payment then maybe this acquisition is truly brilliant.

"Greg’s (McCoach) Crystal Ball

As we head into 2009, I expect this will be a set-up year for the mania phase in our market, which I see happening sometime in 2010. In the near-term, I think we see a short, very short "Obama Rally" in all markets before the next shoe drops and the stinging realities in the financial world continue to worsen.

As this happens the prices of gold and silver will begin their next ascent to another new high with $2,000 an ounce gold easily within sight for 2009. This will cause our quality mining shares to disconnect from the performance of the general markets.

Thus far our mining shares have been hit hard as general stocks were hit hard. Sometime in the latter part of 2009 though, I think we begin to disconnect from everyone else as precious metals become headline news. This will set us up for the mania phase in our market where I see the masses come piling in trying to get any exposure to the precious metals they can.

This will be the best opportunity to take profits in the past ten years. It may just be the greatest investment opportunity of a lifetime for those who take key positions now. This is where the biggest money is going to be made in these markets. The returns could be phenomenal and beyond the wildest imaginations of most investors. "

Well, it's just his opinion but it makes sense to me. Hopefully, this silver project is a good one but time will tell.

BGT