Luna Gold LGCUD

September 25, 2016 - Luna likely to get a few million $`s

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Luna was one of the worst managed gold producers over the past decade.  Quite unfortunate, as the company`s assets were (and still are) very promising.  Us tenured shareholders got essentially wiped out on this investment.  With the gold market picking up again, hopefully the new management will get us back maybe a fraction of our original investment.  Sadly, the vast majority of our original investment is likely gone forever due to the predator financings - resulting in huge shareholder dilution.  Pacific Road will make a killing.

From pg 11 of the Q1`16 Financial Statements:

``Notes receivable relates to the Company’s 2012 sale of its Cachoeira Project in Brazil to Brazil Resources Inc., and represents the present value of the estimated future cash flows to the Company discounted at 20%. The sale agreement provides that on the earlier of BRI meeting certain project milestones or September 25, 2016, the Company will receive CA$0.3 million in cash, 1,214,000 common shares of BRI, and an additional CA$5.5 million payable in cash or BRI common shares at BRI`s sole discretion. The Company has a first ranking security charge over the Cachoeira Project and a guarantee of payment by BRI.``  

Luna had previously received around 2.6 million Brazil Resources common shares.  It looks like those were sold in the past. It doesn`t look like Luna has any more of those shares today.

Luna should be getting another 1.2 million Brazil Resources shares in September this year.  BRI`s share price has skyrocketed recently.  It is currently trading for Cdn $2.84 per share.  As such the 1.2 million shares is currently valued at Cdn $3.5 million.

Luna should also receive Cdn $5.5 Cash + $.3 = $5.8 total Cash.

Current value of the September payment, if I understand correctly, is Cdn $9.3 million.  Hopefully Luna uses it to eliminate the recent US $5.0 loan (which charges a high 10% interest).