Resource Capital Gold Corp GDPEF

*****HALT THE SALE OF RCG IMMEDIATELY****

[LOCKDOWN]

GOLD EQUITIES ARE COMING OUT OF THE LONGEST  BEAR MARKET IN HISTORY ALL THE DYNAMICS FOR GOLD PRICES TO RISE IS  THE STRONGEST THAT HAS BEEN IN DECADES AND WE ARE SELLING RCG FOR PENNIES (SERIOUSLY ) PURE ROBBERY AND IMMORAL IN THE HIGHEST REGARD.WE  NEED TO HALT THE SALE STABILIZE AND RELOOK AT OUR EXECUTION OF BUSINESS PLANS GOING FORWARD.(PUBLIC MARKETS ARE INTENTENDED TO REWARD INVESTORS NOR ROB THEM ) IF THIS DEAL IS NOT DONE PROPERLY IT WILL BE WELL ADVERTISED IN THE INDUSTRTY AS AN EXAMPLE OF PURE CORRUPTION (IT WOULD BE ADMIRABLE FOR THE INDUSTRY TO DO  MORAL JUSTICE ) 
RATHER THAN LEGALLY PILLAGE THE LITTLE PEOPLE.

[damianchosenone]

I would live to see a halt and gold until next year as its already been 5 months but Jack told a friend of mine when he asked that question that they cannot under a proposal as they have 6 months. The trustees probably want their cash and so does everyone else. It is corrupt and non transparent and all secretive. Nobody knows the bidders, they dont know about each other and they cannot compete

[LeftBook]

Secretive bids have the advantage that each bidder is making their own judgments about the value of the property.   Presumably each bid has : 1. estimated the future value and cost of the properties appropriately.      a. NPV $89.2M is an estimate for 208,000oz Dufferin      b. There might be 1 million ounces at each property      c. balance sheet

[therager]

I know of at least one group of the four who has dropped out of the bidding

[damianchosenone]

Good! Less competition for George Young's group. Means that they couldnt match the other offers!

[LeftBook]

"couldn't match" implies they know the other offers. A few hours ago you said it was secretive. perhaps they could not raise the cash they needed to make their bid

[LeftBook]

private or public company ? share or cash based ? canadian, australian, american, other ?

[damianchosenone]

Sprott lending wants their cash and so do creditors. They dont want shares somewhwre; they can decided after they get their cash and interest where to invest. Obviously one of the companies didnt have enough cash. The question is how much? I say they had less than 17 million. 17 million in my opinion will be enough for a shell.. That's is all we might get. Or nothing! Not getting any money per

[LeftBook]

Sprott Lending and the other creditors will be paid. The payment does not come from shares.  In a merger the cash could come from the aquiring company, call it XYZ Imagine that XYZ has $20M of taxes to pay AND $20M cash in hand to pay the taxes. Company X mergers with RCG. RCG's tax credits are used to pay X's taxes. The $20M of cash is used to pay RCG's liabilities. === A

[damianchosenone]

Spoke to Leigh and I suggested a total of a 30 million buyout minus 20 million to pay off liabilities. He told me he would be very surprised if we get anywhere near that. Expects the most probable outcome is a shell

[LeftBook]

If the buyer bought all the assets for $20.5M then the cash would go to paying the 20.5 liabilities including DIP. RCG shareholders would own a shell with $20M of tax credits with a marketable value of, say, $10M. If it is a buyout then the buyer gets the assets, the liabilities, the shell and the tax credits. The shelll and tax credits have the same $10M value. The RCG shareholders would receive

[damianchosenone]

Leftbook! In a normal sale those numbers would be used. We are in bankruptcy. The buyers are trying to get it for 50 percent off or more!

[LeftBook]

Damian, that is where you and I differ.  I am using the value it is worth. I am not trying to guess the various haircuts. I am not trying to guess the cash they have. We don't know. Each bidder will pick their own margin of safety to de-risk the project. They will each have their own estimate of the value. It possible the company with the largest haircut also values RCG the highest. It

[damianchosenone]

If the total value of shares and cash is less than 20 million then best case we get is a shell, if its enough for a proposal. I strongly believe the 2 public companies do not have enough cash to pay off liabilities and that is why one pulled out. The groups have cash but not trading. In any case bids are closed, PwC process wasnt a good one and we are screwed

[LeftBook]

And then there were three. private or public company ? share or cash based ? canadian, australian, american, other ? ==== On may 23 Leigh wrote ... Other than the above, I have only been told that the company is pleased with the bids received and that they are very pleased with having 4 participants still bidding, as well as the strength of the bidders.     Notes:  &