Ann: Beacon Minerals Board Update, page-33

What if the company decides to just pay back a small portion of the debentures early, and use the built-up cash to embark on a vigorous exploration and acquisition campaign? That way, the debenture holders continue to get most of their 12% per annum, and the exploration and acquisition efforts hopefully will lead to an extension of mine life, leading to big dividends for them, eventually.... I do not like this conflict of interest.

if I were in their shoes and I wanted to maximise my personal gains, I would keep the debentures alive for as long as I could. I wouldn’t care about the debenture holding hurting the share price, as long as I didn’t need to go to market to raise more money.

that 12% per annum would be my sweet dividend for the time being...

...
in my opinion, for shareholders who are not holding the debentures, I would want those debentures paid off as soon as possible and for BCN to get a much cheaper bank loan if they needed to raise some money...after all, a company presumably earning $40m in profits in the next year surely should be able to borrow money cheaper than 12%...or, more credibly, not need to borrow money at all!

Do you agree?