RE:Numbered companyAzzenmcelbow wrote: Whomever is the control person of this trustee nominee corporation will be the most likely one running the newly washed mine, I would guess.
The financial statements presented to the trustee on a regular basis show that, even without servicing the $50 million in debenture debt, the company seemingly could not make money.
Material matters were the low grade of the ore and the low price of gold. Both the grade and the POG are what they are, but the POG could go up...the low grade seems to be permanent, however, unless further (expensive) drilling uncovers higher grades somewhere on the properties.
As the trustee's reports seem to show, the equipment was in pretty rough shape and much of it has gone from the former company (some over to Gibson's BGM or else back to the vendors who repossessed).
While the assets might be newly washed, no matter how sparkly and shiny, a pig's ear is still a pig's ear.
That said, it's likely that 7097914 Manitoba Ltd is going to need fresh money to preserve whatever assets they got.
I'd imagine a sale of the assets, on credit, to a publicly traded company; a flurry of optimistic news releases; and then public placements, both flow-through and non-flow-through, to fund the continued extraction and processing of low-grade ore at a low POG.
Coming soon to a theatre near you? The Return of San Gold (Part Five). Starring?????
From a BGM news release, dated 2015-03-31
Barkerville Gold updates Cow Mountain mineral resource
2015-03-31 09:16 ET - News Release
Mr. Greg Gibson reports
Commentary
Barkerville continues to build an exploration and development plan based on primary ore and mineralizing controls from first principles in keeping with management's previously stated goals (see press release dated March 17, 2015). This undertaking has commenced under the direction of Paul Geddes, vice-president, exploration, and will require a period of time for compilation to include all available historical underground and production data. Additionally, an assessment of the company's extensive landholdings and external assets will also be made in order to extract value and maintain focus. Barkerville's management is of the view that current market conditions, deposit suitability and permit timing dictate that alternative courses be considered.
A series of smaller-scale, high-grade, relatively low-capex operations will be of prime consideration to the current team and is well within current management's areas of expertise, experience and proficiency. Tom Obradovich, president and chief executive officer of Barkerville, stated: "Our recent success with small-scale test mining of the Bonanza Ledge deposit, combined with the vast amount of gold successfully mined in the past,
gives credence to the traditional tried-and-true methods of extracting narrow-vein deposits. Our approach to the Wells high-grade deposit area will be to let the deposit characteristics dictate our timing, methods and approach. "
"All exploration, development and corporate decisions from our new management team will be logical and suitable based on geology, geometry and realistic assumptions with regards to markets, financing and timing," added Greg Gibson, chairman of Barkerville.