"Does this help our discussion?"

Yes! If Tyhee buys options on the gold price such that if the gold price rises the bank is paid at the established price and the option earns sufficient money to cover the difference between the current gold price and the loan agreement price the shareholders would have some protection.

There would be some counterparty risk in dealing with the options market maker who could easily go belly up in an overnight several hundred point surge in gold such as what would happen in a currency crisis, but at least we would have some protection. Further if the document required gold payment by Tyhee (i.e. physical metal as opposed to paper currency) I wouldn't touch the deal. I would sell my shares as fast as I could press the appropriate buttons on the keyboard. BAIRES2 can tell you that I have filled his private email box with stuff relating to this potential financing event.

The shares I hold in my margin account, not those held with certificates, have just become available for trading purposes where as they were sacrosanct before.

I will wait to see what actually happens and what assurances come with it when it occurs. But this is not IMO the way to build a company when there exists probably close to 3 billion dollars worth of gold near surface. Start a tad slower and build with internal financing from internal sales at market. It would be a disaster to have come so far and throw away the potential with a financing deal which puts the company at the mercy of bankers. From what I hear Canada has a housing bubble as large as the one that just devestated (no make that destroyed...it just hasn't fallen yet) the U.S.

Those Canadian bankers will become as ruinous as the bankers currently inhabitng the U.S. if that thing blows.... No make that when that thing blows. And the Canadian government won't be out looking for the interests of miners. The miners don't have a lobbyist group as do the bankers so you can be sure where their loyalties will lie.

Those who know my posting history know that this is just about the first time I have ever said anything negative. I know the horror bad financing can cause (not from personal experience) but from a careful consideration of jsmineset over the years.

P.