Hi Buc,That debt facility was noted by Netty in her fabulous...

Hi Buc,

That debt facility was noted by Netty in her fabulous post the other evening. It was also mentioned previously in a company announcement. I believe the $10mil number to be an accurate depiction of the target facility size. I don't know if the facility is already in place or not but it sounded like terms offered by the bank were quite agreeable.



fyffee,

Its the company's stated position that that land will be sold. If Mr Ihavedamoney didn't cough up then there are other (possibly 3) interested parties with whoom SSN expects to negotiate an alternate sale to on similar terms. I believe this has been in written announcements at least twice and from what I heard on Monday this hadn't changed.

As of Money SSN was still hopeful that on Tuesday US time the funds would be recieved as expected. They seemed relaxed about any secondary failure to settle on the basis of the number of alternative parties which have been in the wings for weeks now. Nothing was known either way on Monday thus there was nothign to report. Today we all know.

The back story to this may also help to put things into perspective. It seems the counterparty to the signed deal had the cleared funding to complete which as announced was validated by his bank. He appeared to be shopping the deal around the industry looking for backers, presumably to help fund a drilling campaign on the land. After giving SSN $13mil, his $20mil (or whatever the number is) was going to get very far. It seems he did attract some interest and thus SSN may have been approached directly about selling the Roosevelt to the interested parties rather than them doing a farm-in deal with somebody who would appear to have failed to settle on two binding sale contracts in one month.

As the sale contract has been terminated and I assume SSN has $100k extra in their account for the trouble, SSN is now free to enter negotiations with one or more of these parties which it has previously referred to. they could not do so before hand. I wouldn't be surprised to see an announcement in the next week advising of a new sale agreement on basically the same terms but with a new counterparty. Certainly I think SSN will be looking to get this cash in the door during September.

I don't however think that we will likely be seeing farm out as this would be at odds with the strategic priorities and would impede the milking of the NSY and Rainbow cashcows as I believe SSN sees them.