RE:RE:Barkerville printing presspigbruinmcveid wrote: So, bottom line, you'd have to say that worked out well, eh :)
Well, for a $15 million loan and maybe about $6 million in PPs (and most of the money went into flow-through shares), Eric Sprott got a goodly chunk of the company, and BGM likely has a Sprott-friendly BOD and management.
Presumably the BL was high-graded, and the results for the first 5 months of 2015 seem to be impressive; however, with 227 million shares out, that 1st quarter profit (seemingly based upon previously mined/milled ore in the processing system) works out to 2.5 cents a share...and how can they duplicate that with the mine/mill shut down?
IMO, they're starting over pretty much from scratch, and it'll likely require a lot of time to develop a plan on where and how they're going to mine.
As the latest release states, "with the ultimate goal of drill defining minable gold resources"...that seems to indicate lots of drilling to come and "high-grade nature of the vein systems the team has identified" could indicate a switch to underground mining (which didn't work out all that well at San Gold).
All in all, with plenty of money (which Sprott) has and plenty of expertise (which management has), then this could become something meaningful in the next few years.
However, it'll likely be much more meaningful for Sprott and management than for present bagholders, as Sprott extracted about 82 million shiny new shares for a $13 million loan ($15 million less a pre-existing $1.5-million loan and finder's fees, etc. of about $200,000)...which is about 16.25 cents per share.