RE:RE:RE:RE:RE:RE:RE:RE:RE:New $3.5M loan cominghalcro wrote: Tradernick wrote: What I expect to transpire over the next few weeks is as follows -
LSG purchases select assets from BGM. Current SGR forms new SGR with KER and remaining select assets of BGM. Proceeds from asset sale to LSG + sale of "non-core" KER assets currently underway, helps finance amalgamation creating new SGR.
We'll see.....
Now then:
1..what select assets would LSG buy from BGM??? The mothballed mill and tailings pond in Revelstoke? The mill and tailings pond in Quesnel? What would BGM then do with its BL ore once it starts up again? Sell to the Ministry of Highways for gravel? Or ditto for the sale of the BL to LSG. What would the QR then process...or would it just be left on maintenance for ever? LMAO!!
And SGR would become a viable mining conglomerate by acquiring the mothballed mill/tailings pond in Revelstoke? Or the BL which is, according to BGM bullboard posters, presently shut down? Or how about the "on maintenance" QR mill (useless without the BL feed...or, actually, more useless without the BL feed, LOL)?
Of course, none of those can happen without BGM shareholder approval...and the real deal breaker is Sprott...why would he get rid of the collateral for his overdue $15-million loan to BGM?
Even if ex-CEO/president/director Callaghan were thrown into the mix as a director of LSG, I can't see LSG opting for it.
2015-02-24 12:16 ET - News Release
Mr. Greg Gibson reports
SAN GOLD OBTAINS ORDER APPROVING ADDITIONAL DIP LOAN
San Gold Corp. has obtained an order approving, among other things, additional debtor-in-possession financing from B Asset Holdings LLC in an amount up to $3.5-million (U.S.) pursuant to a term sheet between the company and the lender dated Feb. 18, 2015.
San Gold also announces that it has obtained a secured loan in the amount of $1,956,691 (U.S.) from the lender pursuant to the financing in accordance with the above-noted order. The loan is evidenced by a secured demand promissory note issued to the lender by San Gold. The note is secured by a debtor-in-possession charge granted to the lender over all of the assets of San Gold. The note bears interest in the amount of 14 per cent per annum, and interest is payable monthly in advance. The note is subject to a 3-per-cent commitment fee payable to the lender. The note is repayable on demand or in certain other circumstances at the option of the lender. In the event of non-repayment of the note and certain other promissory notes of San Gold by April 30, 2015, the lender shall be granted a 1-per-cent royalty fee on the Manitoba mineral properties of San Gold, until such time as the note and certain other promissory notes of San Gold have been repaid. The note is not convertible into other securities of San Gold.
The net proceeds from the loan will be used by San Gold to finance its operations.
The order and other materials relating to the proceeding may be found at the website of MNP Ltd.
We seek Safe Harbor.
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