It is felt, hotoevef, that the policy
cif the examiners will be liberal
in this respect as the only way
that the Government can get its
money back is to fin'd the ore in
the mine, and to stop operations
means that a loss Witt be faked.
Class B Loans
A Class B Mine Loan is defined
as a loan exclusively for develop
ment purposes. It is limited to
$20,000 in a single grant and ap- j
plies only to properties in which
the major value are gold and, or j
silver and/or tin. Properties in
which the principal values are the
base metals are not within the
scope of the law authorising the
RFC to make these loans.
There is. of course, a question
of determining where the major
values lie and it does not rule out
a prpperty If copper, lead or zinc
be present, if the silver and gold
values are such as to indicate that
further development will show gold
and silver values sufficient to re
gard the property as a potential
profitable producer of those metals.
Six Per Cent Interest
The Class B loans are made at
6 per cent Interest and are secured
by a first mortgage on the mining
properties on 4hlch the money is
to be expended. Manner of repay
ment of loans is not generally fixed
in any specific way, i. with no
hard and fast rule, but the RFC
Is requiring that all income from
sale of ore or concentrates be Im
pounded and not allowed to be
osed for further development.
