hedging has already cost the company $11.2m, page-10

It is a balance sheet condition and very logical from a lenders perspective. If a massive liability builds in the balance sheet of your borrower you want to extinguish that and usually that takes the form of control by converting the loan to equity greater than 50%. If the loan is non-recourse the indenture will probably be there as this is a standard condition for non-recourse loans. I could well be wrong and you should ask management to clarify.

The much better option for any junior is to sell a royalty and raise equity.

Others should be careful dismissing gold over US$2000 - I suggest you read more widely and appreciate what is coming.

Start with this first though:

http://www.gata.org/node/7446