Ann: Update Las Lagunas Gold and Silver Project , page-4

re: Ann: Update Las Lagunas Gold and Silver P... Elze, one has to assume that Mac Bank were a very interested party in the review process given their exposure.

The 19/3 announcement states "The review has involved independent specialist consultants, financiers, equipment suppliers, and senior company executives."

Mac Bank are financiers, they make their money out of lending. In the case of PGI they have attractive exposures to gold-based royalties and a hedging book that presently generates for them a good profit. What is the alternative? Take over an $80 million plant in the middle of an island in the Dominican Republic? Hardly easily disposed property in CBD in Sydney or beachfront on the Gold Coast, is it? And how would they operate it?

Sure, it is likely that Mac Bank have said “no more advances, you fund any additional working capital requirements yourselves”. And isn't this exactly what PGI have done? Moreover, I would be reasonably certain (but don't know for sure and haven't been told) that the $500,000 shareholder loan is from Brian Johnson himself. This is what he has done in the past and does this not demonstrate a degree of confidence when the CEO ponies up to cover a short term cash shortfall? Plus, to have a further $2.75 million on standby "just in case" is prudent business practice.

That said, it would be advantageous for the company to clarify the Mac Bank position on restructuring the loan repayments. But, given that Mac bank are making around 10% on this money that's going to be damn hard to duplicate elsewhere in this low-interest environment.