Red Lake Madsen Mine Ltd V.PGM.H

RE:RE:RE:Sprott Confirmation on asset sales etc.

[UptickHedge]

Shelby no one can answer that... this is court monitored and sprott lending needs its $170 mil or a solid plan to repayment. The company is insolvent. There is no company. Sprott lending runs the decision making up to $170 ish mil recovered. 100 cents on the dollar. Unless PGM can raise money for investment and bring in someone competent (JV)  - finding money and then executing a new plan - that convinces Sprott lending to acquiesce on this insolvency direction. Or a new entity assumes the debt (unlikely).  Before this past year at PGM I'd have said Mark O was one of a handful of people that you'd want spearheading a process like this. His resume is legitimate and his experience in corporate governance is credible.  But PGM isn't his finest hour.  And the recent market downturn (March to Nov) that finally knocked Pgm out of business challenged even the best of the best - like Ross Beaty and Eqx. 

PGM Shareholder wise you have Eric sprott, Anglo and Mark O owning upwards of 200 million shares and have very deep pockets and understand the game. They owe $170++ million with multi billion $$ worth in the ground. IMO shareholders only hope is that these 3 salvage their equity in a deal that includes the rest of the float to some degree (obviously). Since this went under Oct 24, gold has added $250 an ounce US and Anglo has doubled - adding approx $4 billion in market cap. Anglo could do this easily - but also take the loss easily. All major parties must be doing a cost benefit analysis in CCAA. Macro environment has done its part as far as tide rising since failure.  So maybe there's an offer - even though there wasn't in August's 'open house'...But it's against all odds when one looks at precedent in CCAA to be too hopeful for common shareholders. This one might be different a bit but maybe not.. Time will tell I guess.