HAC - on the contrary  - you clearly dont understand con notes,...

HAC - on the contrary  - you clearly dont understand con notes, debt instrument or capital structures in general. 

The management here in my opinion have secured magnificent terms for this debt instrument. 

For example if the 3rd Tranche is triggered, being a final DFS and move to mining operations the enterprise value of AK alone (put VEC total portfolio aside for this purpose) in my opinion could be 10 fold higher than today.  You assume that there would also likely be improvement of the resource estimate up to this point in time to back this re-rate.

As mentioned, the debt could be relinquished from profits, but to purely entertain the core basis of your Mother Teresa like desire to warn and doom and gloom to us poor incapable investors; lets say the Company did choose to convert under there election rights, then that would  also be a magnificent outcome.  forcing $35M of debt to be converted to equity at  Vector's election, at a time in when I would suggest benchmarked against market peers that VEC would be at a market cap in the hundreds of millions, provides for substantially less dilution -  for example at a ratio comparatively to raising $3.5M today at current share prices. 

How is this not a great outcome if this occurs??   

Furthermore, I cannot buy a Car at a second hand dealer on a 7% interest rate over 3 years ! Yet the management have secure $35m on remarkable terms and flexibility at the Company's discretion. This screams to me that the financiers have tremendous confidence, in

1. at least achieving a 7% coupon on there loan, and

2. appear to have no concern of being converted to shareholders of VEC at VEC discretion.   

On this basis ALL costs are known to the Company and can be planned , and factored into by the market.   

I suggest you do some research and educate yourself on certain topics, as it will firstly make you a better fundamentalist, and secondly save you from embarrassing yourself and misleading other readers on this forum.  This forum is too educate people, not scare monger with unsubstantiated and blatantly incorrect information, assumptions and metrics.