Water Board Security Deposit Matter - Stayed by Court You're welcome MVargus! Everyone is entitled to their opinion but an opinion backed up by facts is what investors need. In all fairness to Whateverrr, the media has presented the security deposit requirement news as implying that VGCX needed to come up with $74 million by Sept 15th as that how I first interpreted it when I first read the news a few weeks ago.
The bottom line is, VGCX doe NOT need to come up with another $74 million for the security deposit by Sept 15th, they need to come up with about $1 million per year if they have to put up the $69 million security deposit bond or about $1.5 million annually if they have to obtain a bond for the $104 million (Water Board Security Despoit assessment). Either way, I'm sure VGCX can easily handle it. Taking the Water Board to court is more of a principle issue than a money issue for VGCX. If the Water Board is allowed to just pull numbers out of their hat without having to explain each cost line item with no rebutal process then what happens in another 2 years when the review comes up again, will the security deposit double to $208 million with no reasonable explanation? The fact that this matter is even before a court is ridiculous and the Ministers of each respective area of the Yukon Government should be intervening and sorting this out at their levels and save themselves the likely embarassment of being chastised by the court.
Anyway, for now, the matter has been stayed by the court pending its decision. Here's a link to the latest news indicating the matter has been stayed pending a court decision and includes comments about EMR's (Energy Mines and Resources) security deposit assessment. The article indicates the writer was unable to confirm the EMR assessment of the $69 million assessment so I sent them the link to the EMR's letter sent to VGCX and asked that they include the link in any future news articles on this matter.
Sales, security deposits, court cases: Here’s what happened in Yukon mining this summer – Yukon News (yukon-news.com) Of paricular note in the article:
At the end of the day, the court stayed the water board’s security order, pending its decision on the interim application.
However, EMR told the News on Sept. 6 that “the Government of Yukon increased the financial security requirement for the Eagle Gold Mine from $30.8 million to $68.6 million.”
This is considerably lower than the $104 million previously reported in the News and other media outlets. The News was unable to confirm the reason for this by press time.
The department’s statement continued saying that “Victoria Gold has provided confirmation of their ability to furnish this security. The Government of Yukon will ensure sufficient security is held, and Victoria Gold fulfills the Yukon Water Board’s security requirements, while the appeal process is being heard or a stay is approved.”
Both the Yukon government and the government of the First Nation of Na-Cho Nyk Dun declined to intervene or participate in the hearing.
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RE:Water Board Decision Petition
HoneyBadger77 wrote:Thanks for your thoughts Whateverr but before you convince everyone that VGCX management are the villians here and the Water Board the saints in all this you really should get all your facts straight.
Thank-you HoneyBadger for taking the time to post this very detailed and relevent information.
Asking whateverr to get his facts straight is a waste of time. He is here to fear-monger.
This is one of his earlier posts on the subject:
So Yeah This is Serious
So yeah, this is serious. You, your company you hold shares in and John have to come up with a completely unexpected $74 million by Sept 15th !!!
AND.......
You better get your Sh*t together if they don't it is quite likely they will be very restricted on the mine operation or even shut down completely.
The quartz license and water permit are mmmmm, just a little bit important.