Is Sterling collapsing?

Today's outrageous terms for Sterling's bridge loan further reinforces the rumors that Sterling is collapsing. I expect that they will lose experienced employees to their neighbors. Can they get their cash flow going before things get worse?

The good news is that the impressive land position that DeMotte assembled might become available to drillers with money and motivation, should Sterling decide to sub-lease or give up some of their area leases to raise cash.

http://biz.yahoo.com/iw/080623/0409581.html

Sterling Mining Closes $2.4 Million Bridge LoanMonday June 23, 1:02 pm ET
WALLACE, IDAHO--(MARKET WIRE)--Jun 23, 2008 -- Sterling Mining Company (Toronto:SMQ.TO - News)(OTC BB:SRLM.OB - News)(Frankfurt:SMX.F - News) Company") announced today that it has arranged a debt financing for $2.4 million.
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The Company entered into a bridge term loan with a group of lenders in the principal amount of $2,400,000. After a deduction for a reserve of $216,000 for interest and legal expenses, a payment to the lender for services of $144,000 and recording and other costs, the net proceeds to the Company were $2,021,740. The principal amount of the loan is due 120 days following the date the loan was made and bears interest at the rate of 24% per annum. Interest is payable monthly beginning July 1, 2008. The loan is secured by certain patented mining claims, property, equipment, inventory, leases (excluding the Sunshine Mine lease) and other personal property.
This strategic bridge loan provides Sterling Mining Company with timely and non-dilutive working capital to meet its short-term needs as it pursues opportunities for long-term financing.