Mark
I like your lateral thinking as well. Just a few comments, just me thinking out lous. no intention to pour cold water on the idea (I like the idea).
1. Presumably, the bond issue has to be approved by the TSX.
2. The rank of the bond has to be senior enough, infact top of the rank would be required to make it attractive, just in case (heaven forbid) the company becomes insolvent, so that the bond holders would feel comfortable to know that they would be at the top of the food chain. BTW, what would be the yield of the bonds, nothing? and the gain is the benefit/reward = 1 oz gold - $1000, currently approximately = 1700 -1000 = $700 = 70% gain (over a 3-4 years to get the mine in production status?)
3. In case of a TO (friendly or otherwise) the bondholders would be protected (somehow, don't know exactly how)
4. Bonds offerred to anyones or just to shareholders? A quick math shows that $1B/65M = $15/share, i.e. if shareholders are buying the bonds according to the number of their shares, then it would require a lot of money from the individuals or major shareholders, i.e. if one has 100,000 shares then 100000 x $15/s = $1.5M (for 1.5M/$1000per ounce = 1500 sheets of paper that has $1000 value). If this is too much money then what? Issue bonds to non-shareholders? Implications? Not enough subcribers. Would $0.5B be OK?
5. $1B + $73M present cap = a lot of money = enough to build a mine, starting with the restricted pit design, if the bonds sell like grilled jumbo shrimps/prawns.
You might want to fly this idea in front of Dave to see what he think....and have the idea sent to the BoD with the intent to present it at the AGM.
Other people may have other ideas on how to proceed with this. Let's hear them.
goldhunter
