Victoria Gold Corp VITFF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:NOT GOOD!

[HoneyBadger77]

MVargas. regarding your comment: 

 "I don't know if just the Eagle mine and associated infrastructure was pledged as collateral against the debt or whether the entire assets of the company are at risk.  If the former, then the company won't go to zero as they have other properties (Raven, Lynx, Brewery Creek, etc.) with an interest in Banyan and Sitka.  Management will continue to collect salaries."

When I spoke with JM around the time they were going through the motions with Yukon Mines and Resouces and the Court regarding the reclamation bond's sudden significant increase, I got the impression that the inventory on the HLP was the only collateral that was pledged as collateral and at that time I believe the inventory was valued at around $125 million.  If this is the case and the inventory is the collateral  (and I could be completely wrong here) the Bond company is entitled to the pad inventory ONLY and no other company assets.  And if this is the case, well that puts a whole different twist on things because if the bond company ever wants to recover its $104 million, its going to need to recover all the inventory it can (both on and what's left the pad), especially if that's the only collateral they can touch.

And regarding their two Term Facility debts due in 2024, the two $8 million debt payments due on June 30th and again on Sep 30, as you've stated as their only financer debt payable in 2024, I too found their default  in June odd.   Why default when they could have easily paid both these, so why didn't they pay?  The only reasons I can think of is that delaying payment is to see just how bad the environmental impact is first and what potential liability they are dealing with and then make that call.  I think it's important to note that JM has some deep pocketed associates and so if there is any way aroud all this, you can bet JM is or will be closely looking at every potential opportunity. 

My opinion only.

HB77