Ryan Gold Corp V.RYG

newest acquisition

[bob4977]

I doubt that RYG had to spend the latest $2 million to meet their covenants. Maybe this is just a situation that a company is having difficulty raising money at a reasonable price and RYG has this money and sees this great opportunity. I bought into a company exploring in the Yukon and now I seem to own a venture capital company. Oh well. It is good to diversify.

Bob

[sevenseas]

but why the deals with $2million to be spent by December 31st if it is not to spend the flow through...when you can drill all winter in N. Manitoba??  Looks like a bit of a year end panic to me - maybe Osisko or Dundee lit a fire under them.  There's tons of opportunity out there without waiting until end of October to pull the trigger. Another factor is that they

[bob4977]

Those are all good points sevenseas. Both deals required $2 million in work to be done by year end. Castillian gets drilling done to better define a resource. Some good drill results would raise their share price and make it easier for them to get favourable financing. I hope these deals were sweetheart deals for RYG and not some panic deals put together at the last minute to meet their

[yukoninvestor]

In my opinion the Carlisle and Castillian deals sound sort of like a loan, or perhaps a "financing", from a cash rich RYG to companies in need of money to meet looming commitments. It would be interesting to see if there is a connect between the three companies vis a vis common financiers or management or a combination of both.

[jadegreen777]

 i can tell you castillian has a lot of the same large investors.        and    it does look  more like a loan   now   and  a loan if thats what it becomes  ill give a decent profit  to ryan   --- but  i realy think this is realy  two companys  that have  the very best

[jadegreen777]

basicaly this alows ryan to atach itself to ct  for now   and  it was  said they were bouth interested in looking into a jv  and a long term parnership            ct gets  some money  they dont have to dilut for now  but  they know   what they are going to be showing   and

[sevenseas]

It wouldn't be a stretch for companies to be connected on some fronts...note that Castillian has a property in he Yukon, right beside Ethos which is another "spawn of Shawn" .  Eastern connections there as well. I agree that it still looks like a loan-for FT issues. With all the cash, I would have preferred to see deals that are more than dipping the toes in, though

[yukoninvestor]

Perhaps you are right, but the way I read the news release it seems to me that Castillian gets a good deal and RYG may very likely end up with nothing. If results of the work on the Castillian property are good, I am guessing that Castillian will exercise their option to get the 10% back from RYG for reimbursing  RYG's exploration expenditures. If results are poor... I fail to see whats

[bob4977]

I think you need to reread the news release yukon. Bob

[yukoninvestor]

I just did and I seem to get the same gist each time I read it. I will attach the line from paragraph 3 that I find puzzling. Maybe I am losing my mind. Anyway, here is the line from the NR in quotations: "At any time prior to December 31, 2013, Castillian will have the option to purchase the interest back from Ryan Gold in consideration for, at Castillian's option, either a cash payment

[bob4977]

Maybe I need to reread the news release. Bob

[bob4977]

I see what you  see now Yukon. It makes it look like CT had the leverage because RYG had to spend the money by year end. If that is the case that just reeks of bad management. With all the miners out there that need money to explore RYG has to wait till the last minute to make a deal. I do not know much about CT but I would imagine that with their shares selling for under 5c they would not be

[yukoninvestor]

So I haven't lost my mind... I think. To me it certainly sounds like a great deal for Castillian, if results from the 2 mill in work are good and/or the market turns around I would guess they will have no problem giving the 2mill back, in which case, if I am reading it right, RYG is left with nothing to show. If results are poor and the markets don't turn who really cares what happens

[yukoninvestor]

I think a previous poster had mentioned something about a connection between the two companies. I am just totally guessing here but perhaps both companies have been financed by the same people in the past, and now one co has cash and the other co doesn't. The co with cash has no immediate commitments and the co with no cash has pending commitments. In my opinion a scenario like that

[jadegreen777]

may bee i can help  you here   i know  ct very well and have had a lot of conversation with the ceo bill pearson    if  goten to know him  hes  for ct first of coarse  but    this is what....  and remeber the drill could be so so .. but  they will likly be good  just believe me  im not dding for everyone 

[yukoninvestor]

Not sure what exactly you are trying to say as your post is hard to read. The deal between the two companies still sounds to me like a loan from RYG to Castillian. IMO good for Castillian and nothing in it for RYG.

[jadegreen777]

sorry i was real tired  and  i couldt find my reading glasses     just  wait tillo next year      your company will be jv w on hope brook    just look at all your major investors  its a clon to ct   im sure  they had something to do with it   in my opinion    all is good its a marrage

[jadegreen777]

i do apalagise for  making a post being so tired   i had a  i had a few drinks   too -- ops -------- it was a bit hard to read    but  i think most people    can get through it  ---- any questions spacific ly just ask.     basicaly    its not a loan