IKN

Thy sin’s not accidental

Mining PRs and the Ottotrans™, part 12

I’m sorry, I shouldn’t just pick on this one company all the time. There are so many flea-ridden dogs out there, after all. BUT I JUST CAN’T RESIST IT.
Here’s what it says:

TORONTO, ONTARIO–(Marketwire – Aug. 24, 2009) – ECU Silver Mining Inc. (“ECU Silver”) (TSX:ECUNews) is pleased to report that it has entered into an agreement with its lender to restructure its current debt. The restructuring of the debt will provide ECU Silver with greater financial flexibility as we move forward with additional development plans for future operational growth and for the planning of our exploration program.

The Company has reached an agreement to restructure its current debt whereupon it has extended the maturity date of the loan by one year. Principal repayments will now commence in November 2010 and will be payable in 12 equal monthly payments.

The ability to restructure the financing is testament to the quality of the Company’s assets, the success with our milling operations and the excellent relationship we have with our lenders.

An important benefit of the debt restructuring is that the revenue generated by our operations will not be encumbered by principal repayments which are now deferred for one year. In addition, the debt restructuring will also mitigate the need for the Company to seek out other material financing alternatives.

And here’s what it means:

TORONTO, ONTARIO–(Marketwire – Aug. 24, 2009) – ECU Silver Mining Inc. (“ECU Silver”) (TSX:ECUNews) is pleased to report that it has decided to ream its shareholders even further to the tune of CAD$2.5m and has entered into an agreement with its very happy lender to restructure its current debt. The restructuring of the debt will provide ECU Silver with the chance to boot its problems into the future and pretend they don’t exist as we dazzle our sheep-like hoards with shiny beads, mirrors and yet more talk about undeliverable plans for the future.

The Company has reached an agreement to restructure its current debt because right now we have no money at all, whereupon it has extended the maturity date of the loan by one year, which means we pay quarterly interest on U$15m owed at a rate of 14.9% for a year longer than everyone expected and add CAD$2.5m to the bill. Principle repayments will still have to be made, however, but now commence in November 2010 and will be payable in 12 equal monthly payments of U$1.25m per month, which will be a very special time for all shareholders and a lesson in junior mining finances they will not forget in a hurry.

The ability to restructure the financing is testament to the ability of management to come out with bullshit excuses, the utter desperation of paying through the nose instead of swallowing pride and admitting the dog’s dinner we’ve made of this company and the excellent relationship they have with our lenders who have been wetting themselves laughing ever since we went crawling to them and begging that they don’t serve us with payment orders.

An important benefit of the debt restructuring is that the revenue generated by our operations will not be encumbered by principal repayments which are now deferred for one year. Instead we will add CAD$600,000 to each quarter’s obligations and get screwed into the ground by the principle payments later. In addition, the debt restructuring will also mitigate the need for the Company to seek out other material financing alternatives but don’t worry cos we’re still gonna dilute your lilly asses suckers, just you watch.

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