Jeff, Brian,

Though this news is a month old. I was looking into this company (DDing if you will),and wanted to ask how you view this kind of agreement.

Thank You
Earl


finance.yahoo.com/news/petaquilla-announ...-loan-130000208.html

VANCOUVER, BRITISH COLUMBIA--(Marketwire -03/16/12)-Petaquilla Minerals Ltd. (TSX: PTQ.TO - News)(OTC.BB: PTQMF.OB - News)(Frankfurt: P7Z.F - News) ("Petaquilla" or the "Company") is pleased to announce that it has closed its previously announced Convertible Loan Agreement (the "Loan Agreement") and Forward Silver Purchase Agreement (the "Silver Agreement") with Deutsche Bank, AG, London Branch ("Deutsche Bank"), in the amounts of CAD$6,000,000 and US$11,300,000, respectively.

Further to the Company's news release of March 5, 2012, the principal portion of the Loan Agreement is convertible at Deutsche Bank's option into common shares of the Company at a conversion price of CAD$0.6121, which is the five (5)-day volume weighted average price of Petaquilla's common shares on the Toronto Stock Exchange immediately prior to March 14, 2012, the effective date of the Loan Agreement plus a 15% premium.

Pursuant to the Silver Agreement, the Company will deliver 525,500 ounces of silver to Deutsche Bank over a five year term and the Company will receive an additional cash payment for silver pricing above US$25 per ounce, up to a maximum of US$30 per ounce.

The Company has paid structuring and consulting fees in connection with the loan and forward sale.

Execution of the Silver Agreement constitutes the final phase of the Company's strategy to redeem its outstanding Notes and Convertible Notes. As such, a portion of the net proceeds from the Silver Agreement has been used to completely pay out the Company's noteholders. As part of the completion of the Silver Agreement with Deutsche Bank, David Levy, the noteholders' representative on the board, has resigned as a director of the Company.

Joao C. Manuel, Chief Executive Officer of the Company, commented, "The closing of these agreements with Deutsche Bank will allow us to focus on expanding our Molejon gold plant in Panama, and develop our concessions in Spain and Portugal. We are very pleased with the confidence Deutsche Bank once again has clearly shown in our projects."

About Petaquilla Minerals Ltd. Petaquilla is a growing, diversified gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The Company operates a surface gold processing plant at its Molejon Gold Project, located in the south central area of its 100% owned 842 square kilometre concession lands in Panama - a region known historically for gold content. In addition, the Company has acquired 100% of the Lomero-Poyatos project located in the northeast part of the Spanish/Portuguese (Iberian) Pyrite Belt and several other exploration licenses in Iberia.

On behalf of the Board of Directors of PETAQUILLA MINERALS LTD.

Joao C. Manuel, Chief Executive Officer

NO STOCK EXCHANGE HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.


Petaquilla Minerals Ltd.
Joao C. Manuel
Chief Executive Officer
604-694-0021 or Toll Free: 1-877-694-0021
604-694-0063 (FAX)
www.petaquilla.com

Earl, there is nothing especially remarkable about this EXCEPT that part of the financing was ORIGINALLY pure debt-financing - but with the banker (in this case Deutsche Bank) having the option to convert DEBT to SHARES.

The vast majority of financings are PURE equity-based financing. Is this because the miners WANT to give up significant numbers of shares in return for the cash they need to operate???

Definitely NOT.



It is the BANKERS who want EQUITY in return for their (worthless paper). Obviously trading worthless paper for a piece of a REAL asset-producing company is a great deal for the banksters. So it's not surprising that Deutchse Bank CHOSE to convert its debt to shares.

Hopefully this helps further illustrate how REMARKABLE was Colossus's pure DEBT financing to go to production. Obviously the BANKERS would have preferred to take SHARES.

So how/why has Colossus (out of all these miners) managed to do a DEBT-BASED financing? Simple supply and demand. The economics for their project is SO good that they had bankers LINING UP to lend them money - and thus they could CHOOSE to do a (rare) debt-based financing.