Ann: Fairstar secures funding , page-4

WOW 20% interest on $2.7 mil + $65K set up fee!!!

Either FAS are very confident in finding some good stuff when the rigs start spinning or the company will fold for sure!

That's credit card type rates. It say's to me that they do not have enough proven or a business plan acceptable to any conventional lender. I have completed speculative unit developments before at a lot lower interest rates than that (given it was pre GFC, but still)

I have been watching (and holding) FAS for almost 2 years now and this is the boldest move I've ever seen. If they are wait until early 2010 when their Opes settlement comes through then they will surely save a lot of cash. $540K interest + $65K establishment free makes for a very expensive drilling program when you add the cost of drilling and geological testing.

I can see a couple of plays here:
1. Short term SP explosion and some sort of play with GWR
2. Huge Fe can be proven up quickly
3. Some sort of take over/merger in the pipeline involving FAS + GWR and a third party (Portmans?)

Anyway a short term strong BUY for mine, just don't use the rent money to fund it as you will either be rich or broke!

Ben