re: broker report extreme, page-30

re: broker report extreme Correct me if I am wrong. but GBG put 30m into KML and Ansteel will loan them 30M so that GBG will have some cash.

GBG cash flow is 1M per quarter so not a massive cash cow.

if they get 30m back from Ansteel as a loan can't GBG then put in another 20m from the laoned money into KML and get Ansteel to put another 20M in so that way we still own 30M but we would have put in another 40M into kml to keep us going till August- September?


that will save dilution and at 1M per quarter office burn rate GBG will have cash flow for the year.

you probably asking why bother doing the first transaction to get the loan. I think it has something to do with the 50-50 model of KML. Ansteel probably could not pay KML directly so they loaned it to Ansteel to pay.