Standard project mine financing is typically a mix of equity and debt. The ratio depends on banking practices at the time, but there are many rules of thumb out there which suggest we might be looking to have a 60 to 70% debt and a 30 or 40% equity package (under today’s conditions). Typically the equity is raised and spent first. So we might be looking for $50 to $70 million in equity. The equity component can be made up of shares, convertible notes, options, forward selling, and more or mixes of all of this. The mix of this equity will be determined by management depending on market conditions when we try to get it. For example if we have a low share price and a high gold price, we might opt to sell 100,000 ounces forward at $1,400 per ounce on a spot deferred basis for our equity component, grossing $140,000,000 and netting $70 million (revenue minus operating cost). Not a single share need be issued and the vast majority of our gold production would be unhedged. The balance or $100 million would be debt. We can create other financing packages as well, but the point to understand is Tyhee’s CFO was Glamis Gold’s CFO during the financing or and construction of many of their mines. Lorne has done this before.

The share price has always been a concern, and for whatever reason, we trade below the value of our peer group. We are looking at increasing our IR campaign with a shift in our focus to more of the retail group. At the same time, as we move towards production and clear each milestone along the way, we will remove each of the concerns raised. You will see many news releases in the near future about diamond drill results and expansion of our resources, mine permitting, and more.

Several years ago a common refrain was Tyhee’s resource was too small. We addressed that. Next it was Tyhee’s ounces were not economic. First the PA and then our PFS addressed that. Next we heard that the reserve is too small, we are addressing that in our current drill campaign and mine optimization work. Now we are hearing noise about permitting and we are addressing that by first applying and then working our way through the regulatory process. Each other issue raised will be addressed as appropriate. We know that we’ve had a shift in our shareholder base, from one that believes exploration and total number of ounces is everything to one that seeks production. As one group sells and the other buys in we see weakness in our share price. Whether this is exacerba ted by illegal trading activity or not, we do not know. We do know that we can attain our goals provided gold remains above $850 gold, and the higher it is the easier it will be for us to complete.

Tyhee Gold Corp.,
Dave Webb
president & CEO

"Just thinking out loud here but if we need financing for a mine , you guys say about 150 million. Is that correct ? We hope to have a share price at what - a buck or 2 so we arent issuing a billion shares at that time(hopefully not at 15 cents). Isn't the most imporant job to be done here is to get rid of the corruption meaning the naked shorts. I mean they are literally trying to destroy us in spirit and in dollars. Whatever that takes to get rid of them seems to me to be the most important thing for this company's great success and share appreciation. They are winning this battle IMHO. (very humble)"

My concern is that the gold price (so far) has not acted as the stimulant to the SP as we had all hoped, so I think it's probably shortsigh ted to believe that $1500 or $1600 gold will make Tyhee a 1$ stock. As the poster states, don't we need that to happen in order to get financed? If we're only a .40 stock and you dilute that, you would piss off every shareholder in the process. So the ultimate question is how do we get the SP elevated to the point where new share issuance offsets the dilutive impact? It's hard for me to imagine a bank would loan $150 million without the company doing another offering, but feel free to correct me if I'm wrong.