Ann: LoI signed with Chinese Mining Company , page-3

I think you are drawing a long bow to say the letter of intent to co-operate means losing half the company for a few million.

Mind you, KGM are desperate for cash. The offered about 10% of the company (the 25 mill 8cent options) to borrow $2 mill and still pay 18% interest to the lender.

I may go the to meeting this month and simply say 'what POG makes KGM profitable - and will restart mining' That is pretty much the only question I have. KGM for me was always a greatly levered bet on the POG.

The fact that the Chinese are interested tells me the Chinese are happy to buy gold in the ground at $1600 or $1700 an oz. Because I think that is where KGM become a valid miner.

Now the Chairman has a LOT LOT LOT of skin in the game. So I doubt he is screwing himself with this signing.

To be honest, my feeling is the annoucement is very positive. It means the company is not dead.