report, page-2

They can't just rip them up, they are a form of debt which carries interest and need to be repaid. The point is that converting them into shares would almost double the number of shares in issue for only $21m reduction in debt. The quarterly report indicates that, following receipt of back payments, they should have over $21m in the bank. At 3.75% plus LIBOR the notes are actually the most expensive form of debt the company has. So repay them now and restructure the rest of the debt so it is paid out of cash flow over the life of the mine - simples.

I believe the threat of dilution represented by these notes is what has been deterring investeors of all types from buying into what is actually a great recovery story. Overall all shareholders will benefit much more from a share price that reflects the true value of the company as that enables much better value to be achieved in acquisitions and mergers, regardless of whether they are done directly with company paper or done with cash raised from issuing new shares at a decent price that reflects the value of the company.