Ok chillyballs, I believe we are partly on the same page, it's just that I've had a couple experiences with loan defaults with publicly listed companies and in both cases shareholders, myself included were left with nothing.
All management and directors resigned and the stock was worthless and removed from the exchange. In BGM's case, we are already half-way there as we are currently not listed. It won't take much if BGM defaults to get delisted altogether, and then we can all say goodbye to the size and potential of the resource, as it will be irrelevant by then. That is one scenario.
What is posted now has no effect on share price. Waiting for Snowden results though may be too late if this loan gets approved, because we don't know if the BCSC will accept the report, or whether filing one will be a priority for the lendor as all assets will be essentially tied up. That is another scenario.
The last scenario is that the arm's length deal between the CEO and BGM is meant to create shareholder value by producing gold and getting the company up and running again and have the CTO revoked as quickly as possible.
Ok, so if this 3rd scenario is the likely one, then why have all the assets of BGM secured under this loan? The $5 million in secured debentures that was paid off after the CTO was in place didn't have all the company assets as security. Yet for half the loan we need 100% of assets as collateral.
Why if shareholder value is to be placed first, did the company not pursue other avenues of financing which are availabel? The gold is there and is going to be mined, so why not leverage that? Believe it or not, gold is a hot commodity and having a mine permitted and ready to produce should be easier to finance than exploration on an unknown property. JMO