Apples, the security for the loan is not only from DML shares:
"As security for the Company’s obligations under the Facility Agreement, the Company has charged in favour of Wintercrest all securities owned by the Company and/or its subsidiaries in Discovery Metals Limited (ASX:DML), Celsius Coal Limited (ASX:CLA), Cokal Limited (ASX:CKA), Kidman Resources Limited (ASX: KDR) and Powerlite Ventures Limited."
Source:http://infopub.sgx.com/Apps?A=COW_CorporateAnnouncement_Content&B=AnnouncementLast3MonthsByCompanyNameAndCategory&F=1026507&fileId=131224_Ann_Facility_Agreement_241213.pdf
I don't know what the other shares are worth, but I imagine the loan is well covered with or without DML.
That said, would Blumont resort to borrowing on such usurous terms if they didn't believe in what they were doing?
Apples, the security for the loan is not only from DML...
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