Resource Capital Gold Corp GDPEF

RE:RE:RE:RE:old Anaconda offer

[LeftBook]

I agree with much of your assesment of the situation.

I disagree with your $0 valuation. I am personally surprised at your lack of self interest  by talking down the price.

A pessimistic perspective is part of the reason the share price is low. It stands in the way of warrants being exercised. It stands in the way of fresh cash being brought in.  

I think the shares are worth book value or 7.3c/sh. I think that a conservative estimates given the 
tax credits. Every story I see, including the older Anaconda offer, echoes that idea.

The project is good enough that the conservative numbers work.


Sprott donated 8M shares worth $584,000 at 7.3c book value. 
The shares are worth much more to the recipient of the shares holds for an extended period of time. $4M once Dufferin is completed. $12M once all three properties are mined.
The price will not go up in a straight line.  Gold doesn't mine itself.  There will be further dilution along the way. There may even be consolidation if the valuations continue to be pessimistic. Ultimately it was a very generous donation.

(Sprott's donation looked like $120,000 at 1.5c during tax-loss selling season)