Resource Capital Gold Corp GDPEF

15 million sale of assets coming

[damianchosenone]

That's my call! PwC did a poor job of promoting and advertising..they charged groups a hefty deposit before they went an even looked at the projects. That obviously eliminated groups that were too busy or were annoyed about them not allowing them to go when they actually had time. Secondly they did not tell anyone the bids that were made and I believe management has bee kept in the dark and not told what is going on much. Sprott lending is calling th shots and could care less which deal is best for shareholders and as a result will pick one only good for them. Example: a public company could have offered much more value in shares to creditors and shareholders with shares but sprott wants cash pwc gets paid anyway and so does jack so they could care less about us. PwC has no shares and jack barely does too. He wants money due to him for his numis consulting. Have heard there are way better sales processes to maximize value for shareholders and all involved, problem is in canada no one cares that shareholders lose cash as long as the big boys get their cash. Sprott lending will make 3 million profit from this selling in an insolvency and then 18 percent from a 2.2 dip. Crazy!

[LeftBook]

Is there any indication that there will be asset sale ? pwc's sale proces is very broad from asset sale, to investment, to merger/acquistion. Any idea about George Young's bid ? Leigh gave the impression it was an investment to take control.. As CEO George Young signed off on $25M of assets prior to bulk sampling. As ex-CEO his group would have had excellent knowledge of cash

[LeftBook]

    $18.2M was invested between June 2016 and June 2018 at 14c Eric Sprott's $4m plus investment is similar at 15c George Young's $195,000 stake is also similar at 13c   I assume that George Young and Eric Sprott's investments would have been based on value, a solid understanding of cash requirements, the consequences of share dilution via private placements,

[LeftBook]

Everyone is expecting a haircut but no one knows is willing/able to say what it is really worth. If the balance sheet says the assets are $30M. And the intrinsic value is $40M And there is a $10M haircut. Then we are back to the balance sheet. An estimate of the intrinsic value would include the in-situ gold, the value added to Dufferin bringing it closer to production, and the tax credits.

[LeftBook]

Damian,  if I understood your posts properly you believe that the real value or intrinsic value of RCG is north of $50M but you think it will take a 35M haircut and the whole thing will sell for $15M.

[damianchosenone]

I think it will be worth over 100 million in the future. George told me he thinks it's easily worth between 30 and 50 million Us. Bidders will not look at sheets and numbers to make a bid. They will based on what is owed to secured and unsecured creditors and 15 million is enough possibly to win the bid. PwC will not work for shareholders to get anything. That was clear from the start based on

[LeftBook]

It is entirely possible that some group based their bid on what is owed to secured and unsecured creditors and decided that a lowball $15M bid was worth the effort in case no one else showed up to bid.  I highly doubt that George Young would have thrown away his financial insights into RCG to make a similar mickey mouse bid. As CEO George re-captialized RCG, knew there was substantial tax

[damianchosenone]

They probably did more diligence on the project and realized it was too much time and money to make a profit as the gold is there but requires lots of cash. They also probably got sick of the PwC way they dealt with stuff. I asked George but he hasnt spoken to the group for a long time and they did not return his calls. Maybe they were angry that he told them about this project when it wasnt that

[LeftBook]

It is entirely possible that the George's group did more due diligence and realized that it was too much time and money. It is also possible the group did not agree with the plan the RCG was executing when George was CEO (see note 1). Or perhaps they did not want to invest in RCG unless they had control but the George and RCG had already granted security over substantially all of its assets in

[LeftBook]

cont'd Notes:   1) The Company is not basing its Dufferin production decision on a feasibility study of mineral reserves demonstrating economic and technical viability; as a result there is increased uncertainty and economic and technical risks of failure associated with its production decision. The PEA on which the Compnay is basing its production decision is preliminary in

[LeftBook]

Sprott Lending and Gary will control the outcome of the vote Gary Lewis is owed $2M Sprott Lending is owed $10.7M including SISP/DIP  Gary Lewis has 17.4M shares Eric Sprott has 34.0M shares     Sprott Lending and Eric Sprott are two different entities. Sprott Lending works together with other Sprott entities.   Both Lewis and Sprott have incentives

[damianchosenone]

Gary will not be involved at all. He washed his hands of the stock and is in Australia. Only jack is left from rcg. Also Gary's shares are virtually free now as he sold 5 million at 25 cents a few years back

[LeftBook]

I am not sure what you mean. The debt for shares is equivalent to a 12c/sh investment Lewis did a few gypsy swaps a few years back. I haven't followed the various gypsy swaps closely.  I valued them at 5.0c/sh alongside other 5c/sh investments.     10,597,544 shares at  5.0c +  6,755,192 shares at 12.0c = 17,352,736 shares at  7.7c  or $1.34M

[LeftBook]

Sprott Lending and Gary Lewis will control the outcome of the vote. (see below).   Gary Lewis shares are priced at 15c/sh on the RCG books.   ---   We don't known Gary Lew's cost basis and I doubt it matters. See below.   Lewis did a 12c gypsy swap on Aug 10.  Followed by a debt for shares swap on Aug 19. This repriced all his shares to 12c.

[LeftBook]

  A couple of more points on Lewis' Gypsy swaps ...   The Aug 10 2016 gypsy swap was part of a 25,000,000 share private placement that increased the RCG share count from ... 45,340,954 70,340,954 Trivia. 10,597,554 of the underwater Reliance shares were not sold.   RCG it reported as ..   On August 10, 2016, the Company completed a non-brokered

[LeftBook]

10,597,544 of Gary Lewis' shares were underwater after Reliance wrote off the Indonesian properties. There were 24,430,410 shares outstanding in the empty shell.  The shares controlled $14M of tax credits. Lewis controlled 43% of the company.   All 10,597,544 shares were gypsy swapped Aug 10 2018   4,000,000 shares were swapped again - like shuffling a deck of cards.

[LeftBook]

I have a different take than Leigh on this. Leigh wrote ... There is a big difference between where Gary is at and where Eric is at - at present Gary should be out of pocket very little, because he did not BUY the majority of his shares and the assets that earned him his shares returned just fine for him. Eric remains out of pocket real money at his juncture.   https://stockhouse.com

[LeftBook]

still puzzled about Lewis' shares  ... My take ... Back in 2016. Gary Lewis' shares had no market value. They were underwater after the write down of the Indonesian properties. That said they controlled tax credits in a empty shell. The tax credits are valuable once Dufferin is up and running. Eric Sprott's cash was used to reboot the company and purchase assets. Notes: