Sprott Lending acquired a "near production ready" mine as part of the PwC insolvency process.
Context:
RCG had a $8.24M credit facility with Sprott Lending. In connection with the Credit Facility, the Company granted security over substantially all of its assets in favour of Sprott Lending.
As part of the insolvency process RCG sold substantially all of its assets to Sprott Lending.
Assets
In-situ gold is $6.19M.
Plant and equipment for a discount. $2.05M
Total $8.24M
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Dufferin
58,000oz indicated
150,000oz inferred
Tangier
173,200oz inferred
Forest Hill
75,000oz indicated
250,000oz inferred
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Anaconda acquired Goldboro for $15/oz for a 50/50 mix of indicated/inferred.
Osprey trades near $5/oz for inferred.
Regional in-situ gold value per Goldboro & Osprey
$25/oz indicated
$5/oz inferred
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Dufferin
$1.45M indicated
$0.75M inferred
Tangier
$0.865 inferred
Forest Hill
$1.875M indicated
$1.25M inferred
Total RCG in-situ gold
$6.19M
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$6.19M value in-situ gold
+ $2.05M plant and equipment
= $8.24M value of RCG assets sold to Sprott Lending
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Final note:
Is all value is captured as in-situ gold ?
Some say yes.
Is there additional value in being "near production ready" ?
Seems the answer is no.
There no value to being "near production ready".