Victoria Gold Corp VITFF

RE:mORE bad news for Victoria Gold shareholders imho

[HoneyBadger77]

Very interesting indeed....and I disagree with your headline comment "More bad news for Victoria Gold shareholders imho".

Quite the contrary GoldenPolarBear, this is very good news for Victoria Gold common shareholders, because it's the only chance that retail common shareholders have of getting any reasonable amount of their investment back.  It is now pretty clear that there were / are some serious engineering issues with the Eagle Mine HLF and YTG and EMR were well aware of them going back at least 2 or more years but apparently saw the HLF collapse as an 'Unlikely Event'.  It is this inaction by YTG and EMR that will result in their liability in a civil suit and a reasonable argument can likely be made that YTG's quick move to place VG into receivership was to deflect that liability to the company and away from the YTG.

I've posted many times since the slide occurred that a huge (multi-million or even multi-billion dollar) lawsuit against YTG is a very real possibility based on YTG's historically poor track record in the review, building, and oversight of the various Yukon mines that have gone defunct and taken over by YTG and that track record continued in their handling of the VG landslide event.  The difference with the VG mine situation, compared to other Yukon mine closures is that the company - VG didn't walk away (as occurred with the others), they were forced out and into receivership and that's where YTG made their mistake (just as the Yukon Official Opposition is suggesting).  Make no mistake,  this letter to the Yukon Premier is just the pre-requisite to the initiation of a coming lawsuit process unless YTG wises up real quick and realizes that they best not go down the civil suit road on this one because it will be very expensive.

IF VG did have $119 million in liquid assets as JM mentions in his letter (which souldn't be too hard to prove) and that's excluding the inventory on the pad, then what was the rush to force VG into recevership?  The court even relied on VG's public statement ....that there can be no assurance that VG will have the funds to...blah, blah, bla..... and the court used that public statement to deny VG an adjournment for 1 week?  Really?

I'm guessing that JM and the 9 former directors have given this just a little bit of thought and won't be backing off now just because the Yukon Premier isn't biting regarding their request for a working Committee.  No, I'll bet JM was /is actually hoping he'd say that because that just adds more credibility to VG's case that they were forced out and weren't adequately given a chance to seek financial solutions.  And it seems that the Yukon Offical Opposition Party leader agrees and that YTG's handling of this will end up costing Yukoners instead of the company. 

These next few months are likely to get very interesting if this is headed where I think it is.

In my opinion only, DYODD.

HB77