GREY:NEVDQ - Post by User
Comment by
cnynmanon Jun 16, 2024 9:29am
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Post# 36091016
RE:Basically we have milestones some may missed
RE:Basically we have milestones some may missedYes, exactly. Most of this is boilerplate for Chapter 11. Dates may change with DIP requests and court approval, but this is how it will play out more or less.
NCU will be sold (assets). The only real question is whether the eventual high bidder is interested in selling off the hard assets (mill, mobile equipment, etc.) or in attempting to resurrect the mine.
What to watch for:
Pala and Mercuria know better than anyone on the planet how this mine behaves. If neither of them enter bids during the process, it is a red flag that this property is not likely to be profitable under new management. If they think the property can be operated at a profit, they will offer bids to take control and be on their merry way.
This is what I have predicted and expected for several years (a Pala ownership and operation after bankruptcy). However, after seeing how they 'walked away' and allowed a third party to enter the fray, it may signal that Pala now believes the mine is just too problematic to ever be profitable no matter how much money is thrown at it.