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Largo Resources (LGO.v) pays its CEO a $50,000 bonus for lending it $1m for a month

This links to my fave NR since the close yesterday, one after the bell in the evening which outlines how Largo Resources (LRO.v) is getting a $1m bridge loan from its CEO Mark Smith in order to tide it over until a debt deal gets closed with a bunch of Brazilians. But the fun bit is the terms of the bridge loan deal which include:
  • Secured on company assets.
  • One month duration at 12% interest per annum...i.e. 1% effective interest.
  • A $40,000 "establishment fee" paid to Mark Smith for being nice and writing his cheque.
In other words, he stumps up $1m for a month's fun, guaranteed on his own company assets, and gets $50k in his pocket for his troubles. Heads I win, tails you lose.

Would it shock you to learn that the other Mark Smith company NioCorp ( was the one heavily pumped by Tommy Humphreys at last year? And that it's collapsed since then? It doesn't shock you? Oh wow...