RE:RE:RE:RE:RE:RE:Anaconda out of the game! RCG is requesting offers or investments as part of the NOI.
On the offers side I see two scenarios.
1) buyout or merger scenario
RCG's net worth or book value is $13M.
Without liabilities it is worth $13M + $20M = $33M.
The entire balance sheet is $33M.
RCG has $20M of tax credits off the balance sheet which brings $33M within kicking distance.
ANX does not have $20M cash but it have operational mine.
It also has 457,400 measured and indicated gold.
In my imaginary world, Sprott Lending helps seal a merger. Existing Anaconda and RCG shareholders will own approximately 65% and 35% of the combined company. I am using the balance sheet sizes to estimate the proportion.
2) sell assets and keep the shell of $20M of tax credits
In this scenario RCG sells the assets and pays off the debts.
It leaves the shareholders with say a bit of cash plus the tax credits.
It leaves RCG looking for another buyer or another adventure.
The shell scenario has an oppourtunity cost of being out of the gold mining business.
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Notes:
The neighsayers will say that $33M is too high. And the optimists will say it is woefully low.
I will stck with the balance sheet numbers and see what the market says.