Victoria Gold Corp VITFF

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

[HuskySW]

break,

Of course it's ridiculous, I drop my king sideways.  The whole idea was to just get a what if scenario.

But I now have a number 300m$ to play with for a VG Eagle "normal" sale as a guesstimate with a broken mine.  Fair?. Might be a lot less if bankers settle for less.  Done Deal.


BUt for VG there is still of course the insurance not just what VG carries  but all the consultants, eng firms and co's involved. 

They all have of all kinds of specific insurance to cover liability, structural issues and so forth.

Don't think that VG won't persue that. VG did not collapse the mine (not proven) so they collect will possibly collect insurance

If they do then the mine might be operational again and VG stays.

Let legal and the accountants sort out the above scenario.

But VG still has a potential problem. YTG,EMR and FN

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Next

I understand CCAA or Bankrupt.  :)

So VG  files bankruptcy or JM just wakes up one morning and says that's it (it's bit more complicated but...)

The Mine is then sold for what the reciever can get say 40m$ with the acquirer assuming no liabiltiy for debt or damage as an example. 

Buyer puts up another 104m bond or cuts a deal with YTG for ongoing reclamation (it's all been done before)

Pay locals the 70m?

Buyer has to fix or replace HLP, I dont know insurence in this scenario,  it could be everything or nothing.

Lets go with that.  We all know I like wide open poking around with numbers.  What's a 100m$ one way or the other.  It's what I do. OK

Now here's something that happen just happened down  the road.

Alexco/Hecla Keno Hill

"As part of the acquisition, Hecla issued 17,992,875 million shares of its common stock to Alexco shareholders for a total consideration of approximately $69 million based on a share exchange ratio of 0.116 of a Hecla share for each Alexco common share. Concurrent with the acquisition, the silver streaming interest at Alexco's Keno Hill property held by Wheaton Precious Metals Corp was terminated in exchange for US$135 million of Hecla common stock, in the form of 34,800,989 million shares of Hecla common stock based on the 5-day VWAP of $3.88 per share. As part of the transaction, Hecla provided Alexco with a US$30 million secured loan facility, of which US$25 million was drawn when the transaction closed."

Alexco production was abysmal and hey paid out WPM and so forth.  Then  had to then spend large additional sums to get it operational.. 

They snapped this up for just over 200m$ USD plus the juicy remediation contract. Hecla's happy, YTG happy, FN happy

https://www.prnewswire.com/news-releases/hecla-completes-acquisition-of-alexco-resource-corp-301619766.html

Mergers and aquisitions

https://mailchi.mp/mineralfunds/mergers-acquisitions-report-july-13-2022

You may notice Hecla KH is not the same as VG Eagle.

Point is if there is enough GOLD in those hills and the numbers work someone may think "I can make this great again", maybe Hecla.

Best

givemeabreak1 wrote: 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.