High River Gold Mines Ltd HRIVF

more info from konstantin

[discern1]

My questions and Konstantin's answers:
#1  What is the statusof the drilling program to expand mine life at Buryatzolo and when shouldthese results be reported?


anticipatethem to be available in 2011 (as the formalization of the modelling may takelonger than initially anticipated) and reported thereafter.
 
#2  What is the statusof the Prognoz bankruptcy proceedings and when should a court decision be made(I asked this question in October and was informed that Jan. 2011 was areasonable target date).
 
Regarding the news forPrognoz – the update was given in the 18 February 2011 press release. Thebankruptcy proceedings in Russia is a rather long and complicated procedure andit is really difficult to predict when the final decision will be made.
 
#3  What are thepossible outcomes of the bankruptcy proceedings?  Specifically what actionis the management of HRG asking the courts to rule in their favour about?I would appreciate clarification regarding the legal case itself.  I amunfamiliar with the court proceedings in Russia since I am from Canada andalthough I have read all the information I can find, I haven’t seen a helpfulbreakdown that I can understand how a decision is made.
 
3. The bankruptcy proceedings in Russia is a very sophisticatedprocess and can lead to different outcomes. As was disclosed in the Q3 2010MD&A, one of the possible outcomes is that the observer, appointed by thecourt, may sell or transfer the license as part of the debt restructuring.Another possible outcome is that in the event of a bankruptcy, the minerallicense can be returned to the State. Another possible outcome may be that thecourt terminates the bankruptcy proceedings taking into account the debtrepayment in February. The outcome of the bankruptcy proceedings is uncertain,however Buryatzoloto’s purpose is to realize the maximum value from thelicense.
 
HRG indirectly holds 50% in Prognoz, manysignificant decisions require the unanimous agreement of the parties which mayresult in the impossibility to render certain decisions. The purpose ofHRG and its subsidiaries is to defend their shareholder rights.
 
 
Best regards,
Konstantin Sobolevskiy

[cdnbacons]

Thanks Discern,Basically he says nothing and raises nothing but uncertainty in my opinion. He says HRG "indirectly" owns 50% in Progoz, is this true? If so, how is it indirectly?I initially got into HRG in 2008 for pennies and have added to my position many times over the years, the latest being at 1.36! lol.  That one hurt.  I must admit to feeling

[bart_dc]

cdnbacons,Konstantin was correct in stating that HRG indirectly owns Prognoz.HRG owns 85% of Buryatzoloto which ons 50% of Prognoz.I do agree that in fact he answers nothing and raises questions (in particular about legal proceedings with Prognoz).He knows more but does not want to tell us.DC