How SGX is going to acquire the money to move Borealis into production (that is clearly the plan) should not be the question of interest here... IMO the answer to this is somewhat trivial given the fact that SGX was able to do such an incredible deal in the first place. To make my point a little clearer, consider this question: "Why would a company like GGN-t (TSX, NI 43-101 Au resource, just 70M shares out) care to even entertain such a deal (50% interest in their main property taken right to pre-feasibility) with SGX (TSX-v, 'large float', 'no money', etc.)?"... At this stage we don't know for sure but I think we were given a couple of hints in the NR...

GGN-t CEO: "Sage brings corporate and financial expertise required to advance the project..."

and "Sage and Gryphon have been in discussions with debt and equity financial partners to place the Borealis project into production."

Putting these together it would seem obvious to me that SGX can get the money to advance Borealis to production (with certainty) and that is why GGN is partnering with them. Otherwise, why wouldn't GGN just do this project alone?... IMO the answer is they haven't been able to secure the financing or don't have other required expertise to do so. That's what partnerships are for. GGN has the resourse, SGX has the 'know-how'. Win-win.

Also, re: the $9 million... this would be a capital contribution to the joint venture... i.e. money that would go toward development costs that would be split 50/50 anyhow... this is not a payment to GGN-t... if this goes to production (which is the plan) in effect it is really only like SGX putting in an additional $4.5 million not $9 million... and if we are talking about a 300K Au resource going in to production $4.5M or even $9M is peanuts...

I expect upward momentum again today... This is a great deal and looks like patience is finally being rewarded.

red911

P.S. Just look at the financials for the first part of this project... Unbelieveable for SGX to be able to pull this off... they must have something going for them depsite what many have said...

Financial model of minable reserves (prefeasibility study) at $800 (U.S.) gold price:

• Initial capital cost $17.2-million (U.S.) (ex-owner's costs);
• Cash operating cost $476 (U.S.) per ounce of gold equivalent;
• Net present value at 5 per cent $12.5-million (U.S.) (after recovery of capital);
• Internal rate of return (IRR) 27 per cent;
• Initial mine life five years;
• Payback period on capital 2.25 years;