Resource Capital Gold Corp GDPEF

Possible Scenario

[damianchosenone]

I have a good feelign that we will see a merger instead of a outright purcahse; or if it is an autright purcahase, we shareholders wil get shares in another company.

I think Anaconda woudl fit this well:

1). Anaconda pays off 2.1 million CRA debt
2). Anaconda offers Sprott Lending 10 million shares in Anaconda shares and 2-3 million cash
3). the 150 to 175 million rcg shares are bought out by Anaconda between 5 to 1  and 10 to 1 Anx to RCG share.
4). Unsecured creditors are given shares in anaconda. 

current ANX shares = 118 million
After deal: between 150 and 160 million

ANx will get between 20 and 35 million in tax credits
Anx will make make 3- 6 million ( 2500 to 5000 ounces of gold available immediately with low mining costs) from stopes and tailings.
Anaconda ewill get a free mill they can upgrade or continue with and make money while developing goldboro.

This all makes sesne for Anaconda.

They already 100% wanted it once and for a lot more!!!

[LeftBook]

a merger makes sense. based on the gold  120M existing ANX shares 60M  new ANX shares for RCG/Sprott Lending and others RCG, Sprott Lending and others haggle about how divide the 60M of new ANX shares which includes Sprott Lending paying off RCG's debt and others converting debt to equity. The merged company would have $20M tax credits unless they could justify writing off

[LeftBook]

  Another kick at the can.    Damian suggested Sprott Lending (“Sprott”) as an ANX shareholder in a merger.  It may or may not happen but does lead to a convenient way to value RCG. (So hat tip to Damian for the share idea.)   Based on the amount of ounces (see below) ANX 120M shares RCG/Sprott 60M new ANX shares   Let’s say Sprott Lending takes on

[damianchosenone]

I would be very happy to get my shares converted to Anaconda shares or Atlantic Gold shares. I would be happy with 1 share of Anaconda for 5 RCG shares; any chance of that or is that too many shares of Anaconda given away to rcg shareholders ( 25 million ).  I would hope Eric Sprott would have some influence. 

[LeftBook]

ugh. that's bad... This values RCG as : $10M/20M = 50c per ANX share (not 33c) ($20M Sprott + $10M shareholder)/(40M for Sprott + 20M for shareholders) = 50c

[damianchosenone]

so do you mean that we would have to pay 50 cetne per anx share with our rcg shares at 1 cent? so divide rcg shares by 50 to see ho wmany anx shares we would get?

[LeftBook]

    I had a typo in post. I botched grade 4 math. 1/2 = 0.5  https://stockhouse.com/companies/bullboard?symbol=v.rcg.h&postid=29606996   ---   If ANX had no liabilities as of Dec 2018 $57.9M/118.8M = 49c     If RCG had 60M shares instead of 175M shares, and exactly $30M of assets $30M/60M = 50c     ---   My

[LeftBook]

Yet another kick at the can in hypothetical RCG+ANX merger.   A merger may or may not happen but does lead to a convenient way to value RCG.     If RCG and ANX had a more similar mix of debt and equity a merger would be easily accepted.    I consider a a preferred/promissory note (“preferred”) as a third asset, possibly held by Sprott Lending, as means to

[LeftBook]

correction. see notes. D)   before merger ANX equity 36.2c/sh  RCG equity   7.4c/sh    dialling up or down the preferred gives various per share book values similar to RCG pre merger or ANX pre merger or other targets.    equity = 89.2-23-preferred   Pref        RCG      ANX    comment