busy sunday, page-9

Dear Loyal FAS holders

The figures on interest rates on loans is straight from the auditors qualification contained in their report at page 49 of the Accounts lodged on the ASX this morning. Cannot extract this report and put it up here so please find below a summary of the loans detailed in the audit opinion under the title "Significant uncertainty regarding going concern"
Here are but five loans the auditors have flagged:
Loan 1
$2,717,150 was due on 8/8/12 has been extended to 8/10/12 and is secured over 8m GWR shares. Has a shortfall against the pledged security of $1.76m, interest rate on loan 38%.
Loan 2
Loan of $1m plus accrued interest of $745k secured over 13.5m GWR shares. Was due for payment on 11/6/12 accruing interest at $50,000 per month. Effective interest rate 60%
Loan 3
Amount due being $990k being principal of $500k and accrued interest of $490k secured over 1.5m GWR shares worth $330k. Effective interest rate 93.6%
Loan 4
Convertible notes of $1.4m, $1m accruing interest at 12.5% due Jan 2013 and $400k accruing at 20% due 1/4/2013. Interest accrued as t 30/6/12 $153k
Loans 5&6
Convertible notes that holders chose not to be repaid when they fell due on 1/4/12 of $550k and another loan due of $50,000 also overdue accrued interest due as at 30/6/12 was $237,500. Still outstanding as at 30/9/12
Loan 7
On 12/9/12 the company borrowed $1m to be repaid on 12/10/12 , the interest payable om this facility is $300k an interest rate of 360% (this is the auditors calculation)

The auditor also notes that as at 30 June 2012, the Company had trade and other payables of $1.475m of which $1,014,000 were outstanding in excess of 90 days.

And GZ your take on KJR's remuneration is incorrect.

Kevin's remuneration for being CEO of this outstanding exploration company was $448k. The $676k is the amounts payable IN ADDITION to this to his family for services rendered by them (refer note 20). Markopoulos also picked up $410k.

An utter train wreck