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Core Gold DMMIF

Core Gold Inc is a gold mining company based in Canada with all operations in Southern Ecuador. The company primarily explores for gold and silver. Some of its projects includes Zaruma Mine & Portovelo Mill, Dynasty Goldfield and Copper Duke Project.


OTCQX:DMMIF - Post by User

Comment by RONNIE111on Oct 06, 2019 9:52am
150 Views
Post# 30200900

RE:RE:RE:RE:RE:Shareholders

RE:RE:RE:RE:RE:Shareholders1kgcoffee

Again, we should be getting an opinion of a secuities expert, but in lieu of that, in my opinion, if Core was put into an actual bankrupcy, than there would be no BOD, and the court appointed Bankrupcy Trustee would assume total contol of everything.  And his order of buisiness would be to pay off the secured creditors, bond holders ,etc. , and to do that in a way that would maximize what is left over for the shareholders who are on the bottom of the list.  There would be no hanky panky.

Now in Australia they seem to do it different.  When Minera, Titan's name pre Titan,  went what should have been bankrupt, it went into what they called Administration.  Minera was totally unequivocally bankrupt, with zero assets (the Administrator tried to sell their properties with no buyers coming forward at any price), and lots of creditors debt. Most of the stuff on Minera has been removed from the websites, understandably as they would be embarrassing to Titan, so the amount of the debt is abit unclear, but my guess was between $25 and $50 million.  So that is bankrupcy, but in Australia there are tricks available to avoid it.  

From the mid 2019 finacials issued by Core the total debt looks to be around $15 million, which includes all short term suppliers debt, long term debt etc. minus cash ,receivables ,inventory ,etc.  To balance the books the Portovelo Mill seems to be given a value of $17 m (rounded) and all the exploration and evaluation properties a value of $ 250 thousand.  So it seems the Portovelo Mill could cover all the debt, and then whatever the Trustee could get for DGF, Copper Duke, Linderos. etc. would go to the shareholders.  And I think it would be much more than $250 thousand.  There are different interpretations available for the Zhongjin offer, but some estimates where made that it valued the DGF for as much as $100m, when gold was much lower.  

In conclusion, I don't think bankrupcy is a concern , and let's hope that if the Canadian regulators do their job, any other crooked attempts will not be possible.


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