halcro wrote: Gaberlunzie wrote: Thanks for the information, From the sound of it this is the end of the road for the company, I feel sorry for the shareholders and employees who stuck with the project to the bitter end. Some of the creditors, especially the providers of equipment, appear to have been badly treated. The property almost certainly still has merit so someone will make a bid for it soon I am sure. In these uncertain times for gold, I don't expect the bid to be high but if it is made in time will prevent the surface plant and equipment from being sold off. Such a sale would be a disaster if there is any hope for the property.
This recent history was not management's finest hour..
I believe that everything that wasn't owned/liened by another entity (such as some of the mining equipment) has gone over to 7097914 Manitoba Ltd in return for the $23,750,000 US in interim operating funds advanced by the corporate owners of 7097914 Manitoba Ltd.
That would include all above and below ground mining and milling equipment and infrastructure.
The cash flow report for the final three-week period showed revenue of $2.2 million and operating costs of $1.5 million, with non-operating costs of $176,000, leaving a net operating cash flow of $530,000 ($176,666 per week, plus another $58,666 per week for non-operating expenses).
The above includes no interest on any debt (pre-existing and extinguished by the bankruptcy or to the DIP, 7097914 Manitoba Ltd).
Presuming that the $176,666 and $58,666 per week is sustainable, that would be an annualized net operating cash flow of $12.3 million per year.
That would likely keep 7097914 Manitoba Ltd (which is not a mining company) happy, or might attract a mining company who would offer to make 7097914 Manitoba Ltd whole at somewhere around $24 million plus (U.S.).
For their $23,750,000 (U.S.) 7097914 Manitoba Ltd got property, plant, equipment and mineral properties with a liquidation valuation of $48.9 million (this valuation had been reduced by $62.8 million from the December 31, 2014, book value).
Unfortunately, it seems that the projected and expected higher grades never materialized. Should further drilling delineate higher grades, then even at today's POG this might be profitable.
7097914 Manitoba Ltd is not a reporting entity (it's a private company), so there is, IMO, no way that the public can obtain any more information about what 7097914 Manitoba Ltd will do or may have done with the assets which it acquired.
7097914 Manitoba Ltd likely will want to get interest flowing on its $23,750,000 loan and secure the value of those assets acquired. That would, IMO, require someone to assess the feasibility of resuming mining again, even if on a limited basis, which might entail leasing the operation to an experienced mining operator.