"The forward sales , Isn't that what Jim Sinclair has expressly warned against doing. Isn't that the same thing that has got many of these miners in trouble including Barrick.

Just wondering if you guys think this is a issue at all or am I just being paranoid ?"

Good point! I almost gagged when I read that.

No, you are not being paranoid. That's a certain way to lose a whole lot of money for shareholders in a market with a rising price of gold. All the ounces sold sold in fulfillment of the loan will be sold at the market price at the time of the loan even if gold goes to $5000.

It's very similar to Barrick forward selling their gold which has cost their shareholders big time. Perhaps the contract could be written with an agreement which adjusts the repayment made in the price of gold rather than ounces of gold but the banks usually want that upside for themselves.

Unless this deal is written in a way to protect the shareholders (assuming it is ever undertaken) I'd be gone for greener pastures in a heartbeat. Not that my holdings amount to that much but I'm sure I'd not be the only one.

P.