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Posted On: 12/17/2019 10:28:26 PM
Post# of 2062
I was wrong in my estimate of the next note payoff due being $105,000. It will be minimum of $114,750 plus any interest accrued, and due on Wed. Jan.15th, 2020. Most likely between $120-125K
Jan 15th is 29 days or 4weeks from tomorrow, and 170 days from when the note was issued on July 29, 2019.
The original amount is $85,000 but the note may be repaid between 151 days and 170 days at 135% of the original principal amount plus interest.
If the note is not paid off before then, the holder has the option to convert on that day at 65% of pps based on the 2 lowest share price in the previous 15 trading days.
29 days at current plan of 3 ounces per day=87 ounces at $1500/ ounce= $130,500
Cost per ounce $450 x 87= $39,000
$130,500 - 39,000 = $91,500 (Between $20-30K less than what will be needed to pay off the note)
That doesn’t include any royalty payment to the Govt or anyone else, or any difference between the stated $1500 per ounce and actual price paid by gold buyer. Nor does it allow for shutdowns for Christmas, equipment repairs, breakdowns or days not recovering at least 3 ounces.
3 ounces per day going forward is not going to cut it. I hope they can figure out a way to up that production, because after the Jan. note they have 2 months to come up with approx. $191,700 plus interest for the next one.
On July 29, 2019, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $85,000 less transaction costs of $2,500 bearing a 12% annual interest rate and maturing June 15, 2020 for $82,500 in cash. After 170 days after the issue date, this Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the average of the lowest two trading prices during the fifteen trading day period ending on the latest complete trading day prior to the conversion date. The Company determined that upon issuance of the Note, the initial fair value of the embedded conversion feature was $105,696 which was recorded as a debt discount. The Company may repay the Note if repaid within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest, between 91 days and 120 days at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest, and between 151 days and 170 days at 135% of the original principal amount plus interest. At September 30, 2019, the Note is recorded at an accreted value of $133,478 less unamortized debt discount of $105,184. Interest and amortization of debt discount was $28,293 for the six months ended September 30, 2019.
Jan 15th is 29 days or 4weeks from tomorrow, and 170 days from when the note was issued on July 29, 2019.
The original amount is $85,000 but the note may be repaid between 151 days and 170 days at 135% of the original principal amount plus interest.
If the note is not paid off before then, the holder has the option to convert on that day at 65% of pps based on the 2 lowest share price in the previous 15 trading days.
29 days at current plan of 3 ounces per day=87 ounces at $1500/ ounce= $130,500
Cost per ounce $450 x 87= $39,000
$130,500 - 39,000 = $91,500 (Between $20-30K less than what will be needed to pay off the note)
That doesn’t include any royalty payment to the Govt or anyone else, or any difference between the stated $1500 per ounce and actual price paid by gold buyer. Nor does it allow for shutdowns for Christmas, equipment repairs, breakdowns or days not recovering at least 3 ounces.
3 ounces per day going forward is not going to cut it. I hope they can figure out a way to up that production, because after the Jan. note they have 2 months to come up with approx. $191,700 plus interest for the next one.
On July 29, 2019, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $85,000 less transaction costs of $2,500 bearing a 12% annual interest rate and maturing June 15, 2020 for $82,500 in cash. After 170 days after the issue date, this Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the average of the lowest two trading prices during the fifteen trading day period ending on the latest complete trading day prior to the conversion date. The Company determined that upon issuance of the Note, the initial fair value of the embedded conversion feature was $105,696 which was recorded as a debt discount. The Company may repay the Note if repaid within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest, between 91 days and 120 days at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest, and between 151 days and 170 days at 135% of the original principal amount plus interest. At September 30, 2019, the Note is recorded at an accreted value of $133,478 less unamortized debt discount of $105,184. Interest and amortization of debt discount was $28,293 for the six months ended September 30, 2019.
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