Shell game

Targeting multi-million high-grade oz. in Quebec

Windfall Lake Property, located near Val d'Or, Quebec: Indicated 538,000 oz. (10.05 gpt) / Inferred 822,000 oz. (8.76 gpt) (July 2012)

Dear Agoracom Family,

I want to thank all of you for your patience with us over the past 48 hours and apologize for what was admittedly a botched launch of our new site.

As you can see, we have reverted back to the previous version of the site while we address multiple forum functionality flaws that inexplicably made their way into the launch.

To this end:

1.We have identified 8 fundamental but easily fixable flaws that will be corrected in the coming week, so that you can continue to use the forums exactly as you've been accustomed to.

2.Additionally we will also be implementing a couple of design improvements to "tighten up" the look and feel of the forums.

Sincerely,

George et al

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From_Sudbury

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Shell game

posted on Dec 05, 2012 07:03PM

I've been following this from the beginning as the circumstances of Eagle Hill obtaining this property from the beginning appeared suspicous.

From news dated July 21, 2009

"Advanced drilling (70,750 meters of drilling in 338 holes to date) outlined a number of high grade gold zones at various depths including 4.8 meters of 52.3 ounces per ton and 4.2 ounces per ton over 3.2 meters of gold. In 2007, Noront elected to carry out an underground exploration program to investigate the extensively mineralized zone and its engineers designed and permitted an exploration ramp (4.5 meter diameter) to bulk sample some of these zones. The ramp was constructed, at a cost of between $15 and $18 million, to facilitate the geological understanding of the mineralized system and is over 1,400 meters in length."

Well...Noront never gave us the results of this bulk sample...and....to this date, we have yet to get the results of that bulk sample from Eagle Hill as well.

So, I've been watching...interested to see if this may somehow fall into the hands of some private company....be sold off for nothing....then we never hear of what happened to all the gold.

So, now I see with this deal....it's being financed by some private company...interesting indeed.....with Noront right in the thick of things.

"Maudore has signed a term sheet for a $35 million debt financing with a private equity firm and has received commitments from other parties for $3.25 million in bridge debt financing."

Maudore has entered into a non-binding, indicative term sheet (the "Term Sheet") with a private equity group for a senior secured term loan facility (the "Debt Facility") of up to $35 million

So, given there is no revenue....how to they repay this 35 million? What is the security for the loan? I see a path to this property falling into the hands of a private company....or am I just being paranoid?

How much time do we have?

"After the Expenditures, the Initial, 10% Option and Final Consideration Payment requirements are met by Eagle Hill, the Company will then have three (3) years to either complete the BFS or take the project to production. If Eagle Hill does not complete a BFS or take the project to production, then the Optionor will have the option to purchase back the 75% of the Windfall Lake Property, within that three year period from Eagle Hill for $6.0 million."

"CDN$2,500,000 on or before the later of December 31, 2012 and making an additional payment of $400,000 (the "Final Consideration Payment"), at which tine Eagle Hill will have earned 75% interest in the Windfall Lake Property."

So...it seems like 3 years after the final consideration payment, which occured early. But then this....

From the June 20, 2012 news, it states this:

The Company has one year from April 20, 2012, to either complete a bankable feasibility study demonstrating a minimum after tax internal rate of return of 15% on the Property or give notice to the Optionor of its commitment to cause the Commencement of Commercial Production from the Property (which notice shall specify the number of tons of proven and probable ore reserves on the property at the time estimated by the Company and the anticipated annual rate of production). If the Company does not deliver the above within the specified time frame the Optionor has the option to purchase back the Company’s 75% interest in the property for the lessor of i) an amount equal to the expenses incurred by the Optionee and ii) $6 million;

So...now they need a BFS by April 20, 2013 or Noront takes it back for 6 mill and gives it away...to a company being financed by a private equity firm....a secured financing of 35 million.