Langstrumpf - It is clear that the convertible bonds will not provide sufficient capital.  The last MD&A made this very clear.  Doing a PEA now will help with the share price and allow GWMG to discuss specifically why they will be extremely profitable as well as clarify exactly how much more capital is required.


One could debate whether the convertible bonds were a mistake or not.  On one hand they secured financing that would allow the company to start expanding LCM and refurbish SKK and maybe finish the chloride plant.  It gives GWMG several years of flexibility.  On the other hand, it contrains them in terms of what financing they can get down the road since they pledged all of their assets to the bonds.  This is why the warrants have been extended several times. They know they need that $20M.  Whether or not Jim and Gary thought the bonds would provide sufficient capital we won't know, if ever.  They may have decided to take capital when they could and sort it out later.  Getting capital now is quite difficult as you know.




Nemmya - There is something wrong with the 'Definitive Feasibility Study'. In the CC April-2012 Jim Engdahl said this to Bill Mellnick:

BILL MELNICK: In June of 2010, you had commissioned SRK
Consulting to do a feasibility study on assays on Steenkampskraal. It was
originally to be a BFS. However, you got the financing in place and of
course it's contingent on the 43-101. Are you planning on producing the
public feasibility study or economic development report by an independent

JIM ENGDAHL: The quick answer to that, Bill, is no, we're not.
The original decision not to do a BFS was made so that we could shorten
the time frame to production because we felt we could get the financing
without being completed, as we proved just recently.