I don't really know what the fuss is on the board about being blindsided and so on...lots of nuts around for sure. To me, it looks that the mgmt made a smart decision for once!!correct me if am wrong, but they are selling the call options and collecting a premium...if the gold price stays high or moves higher (than the strike price)within the next 12 qtrs, the options DO NOT get called and therefore don't get exercised - also, it is only for the next 3 years and only with 8% of the planned production...way better strategy than diluting the share holders, IMO...anyone care to comment on this??i think this is the reason why the financials were delayed!
European style calls on gold for the next twelve quarters in an aggregate amount of approximately 36,000 ounces with an average strike price of approximately $833 per ounce. The calls represent less than 8% of the Company's planned gold production for the next twelve quarters. There are no margin or covenant requirements associated with this transaction. Funds from the sale of the forward calls will be used to maintain Avion's exploration and development programs and general corporate purposes.