10 - for the financing of a mill and the sale of its output. In other words, Utah risked the loss of its exploration expenditure in exchange for the opportunity to buy the stock at a favorable price if the exploration work should prove successful. The existing Lucky Mc stockholders traded control of their company and a dilution of their interests for assurances that sufficient monies would be spent to prove or disprove whether the company had in fact assets that had any real worth at all. All of the money so far raised was brave, brave money - - truly venture capital. Utah's studies revealed that the company owned a good ore body, sufficient in size to justify at least a 750 ton plant. On Lucky Mc's behalf Utah then negotiated a contract with the Atomic Energy Commission to purchase the yellow cake from the proposed mill. The problem now be-came one of raising the financing necessary to cover the capital requirements for mining, the construction of the mill, and. working capital. To increase the cash flow available for debt retirement a certificate of rapid amortization was obtained. Because the profit estimates indicated a heavy cash throw-off, it was determined advisable to borrow the entire capital requirements on the best possible basis. With the help of an investment banker we spent several months exploring the possibilities of obtaining a long-term loan from insurance companies and similar institutions with long-term money available. By this time money was tight and the investment fraternity was disenchanted with uranium, which it did not understand, and which it was convinced was highly speculative. As a result the most favorable proposal made to us was one that involved among other things a kicker of 20% of the common stock to the lender. While