M8, technically nothing. The satisfying of the debt as per the MOU is a different beast than satisfying the minority shareholders. But you raise a good point. Would JJ do something extra for the shareholders down the road?
I just read a case of OPTI Canada going broke and could not meet its creditors due date. The company was in bankruptcy court when out of the blue, a Chinese oil company offerred to buy OPTI by paying out the debtholders and surprisingly paid a pitance to the shareholders. So never say never.
So with JJ holding all the cards (100% of the debt and 60% of the equity) the ball is really in their court you might say. Would they leave Liberty to be an empty shell with no assets? Here's one idea, should the debt not get paid. JJ does have other properties in Canada, ie Raglan. Perhaps they re-organize their Canadian holdings and give a very very small piece of it in lieu of Liberty minority shares.
However something makes me think that they will want to remain 100% private and have full control and little interference from the public. Your best bet is to review the goings on with their Goldbrook partnership in Raglan.
You would hate to start thinking this way but Liberty is expecting the Hart study in October. That is only 14 months away from the first MOU debt being due the following December. So I see the odds of that debt being satisfied as extremely low to zero. At the same time both debts are compounding in size on a monthly basis.
Hopefully the tailings pond and mill can be brought on stream soon so the stockpiled ore from McWaters can start to be processed before winter arrives. Then (and its a big then) the Hart site can start to operate before McWaters is depleted and re-claimed.
It seems to me that Liberty will require the McWaters cash flow and the extra $20M of debt that was just issued to just develop Hart. Can all that be done in less than 34 months and counting? Without any hiccups? Thats the new CEO's dilemma to solve. Just don't hold your breath IMO.
