Ann: Proposed Financing Strategy, page-9

Consolidation - always a scary word and will frighten a few. Consolidation's are usually only made when a company is trying to re-capitalise and has no money and little income. Panterra is very different in that it is generating surplus cash flow every week so I dont see that the consolidation will have any long term impact on the companies value however in the short term it may present a cheap entry if other's want to bail in a hurray.

The company has highlighted their problem. They just dont have the capital to fund a second project and all of these measures are aimed at resolving this problem. Their are still several possibilities as to what the ultimate funding will look like. Obviously a big equity issue is not the desired result(and may not happen if the notes get done) as it would be very dilutionary. It is however only dilutionary if you believe the current share price is undervalued.

My conclusion from the wording is that the only real source of funds will come from North America is this is the driving reason behind the consolidation.

They key words to me are

"Current production trends at Las Lagunas should be reinforced by an additional two months of production which will permit a more reliable
valuation of cash flows to be generated in the future, prior to the proposed share issue"

This sounds very much to me that production is trending up.

I have already resigned myself to the fact that it will take several years for this company to recover and it can only recover with the addittion of a second project. Their is lots of positive comments in the announcement re the second project but it can only become a reality if PGI can come up with the capital to fund it
.