Victoria Gold Corp VITFF

RE:RE:RE:RE:RE:RE:RE:RE:RE:Question asked if this will affect the Casino Mines approval

[givemeabreak1]

Husky
I like it even though it is utterly ridiculous.  First Big J cannot sell the company for 40 million lol.  The company unless it goes into CCAA or Bankruptsy would have to be sold for likely 300 to 500 million dollars.  Any buyer would have to pay market cap plus secured and unsecure debt plus payables plus assume any liablility from the collapse.

However, if they file under CCAA or the Bankruptsy act the company can be sold for whatever the receiver deems fair this might mean they could sell it for whatever the market will bear with the greatest return to secured creditors.  Under these conditions in theory they could sell it for 40 million with the acquirer assuming no liabiltiy for debt or damage.

That said the acquirer would likely have to put up at least another 104 million, likely more to cover a new reclamation bond.  The old bond is being used to clean up existing problems so whoever would buy the place would have to bond for future reclamation costs.  

Think about it even if a company came forward tomorrow they would have to be willing to pay the 40 million plus a new 104 million reclamation bond as the current one will likely be spent.  Plus another 200 plus million to cover debt, plus another 50-70 million in payables.   It does not take a rocket scientist to run the numbers.  Just my opinion but the better deal would be to sit on the sideline and hope to pick it up in CCAA or BP.