Bullboard - Stock Discussion Forum Sitka Gold Corp V.SIG

Alternate Symbol(s): SITKF

Sitka Gold Corp. is a Canada-based mineral exploration company. The Company’s projects include RC Gold, Alpha Gold, Coppermine River, Burro Creek and OGI. The RC Gold Project, comprised of the RC Gold, Mahtin, Clear Creek and Barney Ridge properties, is a district-scale, contiguous land package of 1,891 claims covering approximately 376 square kilometers. The Alpha Gold Property is located... see more

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Sitka Gold Corp > Could SIG buy out the Clear Creek contract from VGCX?

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Post by rockport1 on Jul 03, 2024 3:10pm

Could SIG buy out the Clear Creek contract from VGCX?

If VGCX files for bankruptcy, perhaps SIG could make an offer to buy out the Clear Creek property/contract. For VGCX, the Clear Creek property/contract is an asset. In the case of asset sales, perhaps SIG could offer to buy it outright at lesser terms than the recently agreed deal.

For example, if SIG delineates a 2 million oz deposit, it will cost an additional $31 million in payments (including to reduce the NSR to 2%). Perhaps, they could purchase Clear Creek at some amount less than this, saving the difference. Maybe $15 million? Clear Creek might go to auction, so perhaps it is possible; they would only have to be the highest bidder. They would also be able to negate the remaining 2% NSR.