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Victoria Gold Corp VITFF

Victoria Gold Corp. is a gold mining company. The Company’s flagship asset is its 100% owned Dublin Gulch property, which hosts the Eagle, Olive and Raven gold deposits along with numerous targets along the Potato Hills Trend including Nugget, Lynx and Rex Peso. Dublin Gulch is situated in the central Yukon, Canada, approximately 375 kilometers (km) north of the capital city of Whitehorse. The property covers an area of approximately 555 square kilometers and is the site of the Company's Eagle and Olive Gold Deposits. It also holds a suite of other development and exploration properties in the Yukon, including Brewery Creek, Clear Creek, Gold Dome and Grew Creek. The Eagle West target area lies as close as 500 meters northwest of the main Eagle Gold Deposit and hosts the exposures of the granodiorite. The Raven target is located at the contact zone at the extreme southeastern portion of the Nugget Stock. The Brewery Creek Project is a past producing heap leach gold mining operation.


GREY:VITFF - Post by User

Bullboard Posts
Comment by Greatdaysaheadon Mar 06, 2020 4:19am
156 Views
Post# 30773696

RE:2240 CAD Gold

RE:2240 CAD Gold

No, impossible. The option is not with the seller of the call.

For the record, the protection is done by buying put option... The put option gives you the "option" to sell Gold at its strike price.. In this case, C$ 1500.. Obviously Victoria won't exercice the "option".

To finance the cost of buying these put options, Victoria sold calls option strike price 1936.. They gave to Macquarie the "option" to buy Gold at 1936 whatever POG is.

Usually, the call option buyer doesn't want the physical delivery of the underlying (Gold here). The settlement being that the seller pays the difference between the strike price of the call and the real price of the underlying at the time it has to be exercised.

So in other terms.. Their hedge will expire with no value (their puts will expire with no value, as POG is higher).

But they have to pay the call owner.. 

 

Bullboard Posts