Just take my words
The drilling so far on Monster had been paid by Quinto; that was the deal.
It doesnt take a genius to figure the costs had been at least $700,000
so far this year on Monster; QIT had $400,000 plus the $500,000
So QIT spent certainly most on the money received from issuance of the convertible debt.
Second, to do a deal like this one, it was necessary to talk to the lenders.
I am a securities lawyer, no doubt.
Now lets talk about the debenture. A creditor is a creditor; the asset was an option
now its an undivided ownership in the claims. Ask any bank where they feel more confortable ?
The 15% ownership in the property is the answer.