IKN

Win us with honest trifles

Broken slot machine, perhaps broken

The thing that got me when reading this NR out of Lumina Copper (LCC.v) yesterday evening wasn’t that the company needed some working capital, because that was a given (you just follow the quarterly burn rate and cash position to see that). Nah, the thing that got me was that the company wasn’t running a non-brokered private placement that would have been filled to the brim before any retail mortals could get any (the usual LCC.v thing) because Ross Beaty and friends were all keen on snapping up the new cheap prices. After all, these are the very same guys who’ve told us the plan is to sell Taca Taca in 2012 and this is the very same project that Canadian brokerages have slapped $20+ valuations upon (and surely no mistake there, right?…right?), so what’s stopping the guys from filling up here? Could it be that the broken slot machine is feeling the pinch? I was under the distinct impression that $10m is pocket change for you people…but hey, wouldn’t be the first time I was wrong about such things.
Anyway, here’s the start of the NR that explains how LCC.v is getting a loan from its mothership. 

VANCOUVER, BRITISH COLUMBIA–(Marketwire -05/29/12)- Lumina Copper Corp. (LCC.V) (the “Company” or “Lumina”) hereby announces that it has received a loan of up to Cdn.$10 million from Lumina Capital Limited Partnership (“LCLP”). The loan accrues interest at a rate of 10% per annum and will be used for working capital and general corporate purposes.
The loan is repayable on the earlier of: (i) six months from the date of initial advance; (ii) the date of any change of control of Lumina; or (iii) the occurrence of an event of default under the Credit Agreement between Lumina and LCLP.
The loan cannot be converted into, exchanged for or otherwise modified to create any obligation to Lumina to issue, directly or indirectly, any equity or voting securities of Lumina or any subsidiary of Lumina, including with respect to repayment of either principal or interest accruing in respect of the loan. As the loan is not convertible into equity or voting securities of Lumina, there will be no effect on the percentage of securities of Lumina held by LCLP as a result of the loan.
Lumina continues to yada yada continues here

dyodd, dude

ps: or maybe Ross is scared crapless about Cristina too

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