RE:White River mine The article referenced another article.
Perth-headquartered Silver Lake came upon the scene in late 2021 as a 'stalking horse' bidder for cash-strapped Harte which had threatened closure by year's end.
The transaction involves US$74.5 million in credit, reflecting the value of loans Harte owes Silver Lake, along with $22 million out of the money hedge book and accounts associated with operating of the mine and the issuing of Silver Lakes shares at an estimated value of $28 million, with cash consideration of up to $3 million.
Looks like they spent $127M for the Harte operation. So given this piece of information, how does this effect all those concerned in PGM.
Sprott Lending Corp - CCAA Service fees $24M (paid first in full)
Sprott Lending Corp - Secured Creditor $133M
Other Companies - Unsecured Creditors $16.3M
Share Holders - 5 cents is $37.5M or 2 cents is $15M
Given the low ball bids for PGM and the need to do a scoping study, Sprott Lending Corp will be made whole on the $24M service fees and the filed creditors will fight over the rest with presidence given to Sprott Lending Corp (
Secured Creditor) on $133M. So, I will assume the bid was below $175M with the unceured creditors getting nothing.
Also, once the assests are sold, PGM becomes a shell.