Resource Capital Gold Corp GDPEF

RE:RE:RE:RE:RE:RE:RE:RE:old Anaconda offer

[LeftBook]

I think the story here is that there is a significant gap between the insiders and the open market.

I estimate the insiders have 100M shares at 23/c, so $23M. That includes Sprott.
Let's say my numbers are bad. Let's say the 100M shares are in at 15c.

(Sidebar item. From the quarterly resports, Sprott first investment was on Oct 20, 2016 and the last investment was March 15, 2018. The open market traded 34M shares in that period at an average of 16c/sh.  Combined that's 134M shares at 15c)

I heard the $2M investment wanted in at 5c/sh, so 40M shares. 
An insider's price for the same 40M shares would be 3x higher at $6M.

If that $2M was a geninue interest in RCG they could have bought 40M shares on the open market. And would have driven the open market price higher. The higher price might have attracted a bigger fish.

$2M was too small to solve an operational issue. RCG needs 10x that.

(A while back there were multiple comments that the company could be bought out at the open market price around 2c or whatever. This is nonsense. There are relatively few shares available at such low prices. I estimate that 50M shares have traded below 15c, at an average of 5c.

Put the other way if someone wanted a 50M share stake in RCG their average price would be 5c and their top price would be around 15c. Lower if the company remains stuck in the muck. Higher if production starts up soon )

I think RCG insiders want a peer at 15c/sh. That's hard to find.
7c/sh is probably easier to find but is a tough sell for insiders in at 15c/sh

Back to my opening point. There is a significant gap between the open market and market that the insiders are using to price investments and debt required to run the company.