Resource Capital Gold Corp GDPEF

RE:RE:RE:RE:RE:RE:dilution

[lmcbain]

I definitely understand the perspective and don't completely disagree it. The merit of a sale would be completely dependent on the deal being offered, in combination with the actual financial state of the company. On paper, the company clearly appears to need cash and the sale may simply make sense for that reason. 

Whether selling is worth it or not depends a great deal on the company's certainty regarding Forrest Hill's potential for production and their ability to get it into production without huge dilution or a less than fully benefical merger. The value of a producing gold mine can outstrip the value it would typically have in a sale very quickly, once in production.

The other question is why has the market on RCG been quashed as badly as it has? If Forrest Hill is sold, I would be watching very closely as to who the buyer is; there may have been a decision made that this was going to be spun off (sold) and the intent may have been to do so in a manner that would not require dispersion of the proceeds to the shareholders. I am NOT suggesting I have any insight as to this being reality, but it is something I would be watching for.

Salut - Leigh McBain