Resource Capital Gold Corp GDPEF

So strange how it all worked out

[Jherek]

Interesting how things played out.

1. RCG close to production does round of financing to get things running
2. Sprott comes in and finances the project and brings in Greg Gibson
3. Despite the project being so close to production news delivery on the project that was done at least monthly stops abruptly 
4. Update finally comes, instead of mining gold they use up all their new money buying properties
5. CEO (George) gets kicked out of project
6. Lack of news on gold mining progress
7. Reneged on Concordian project that would give more value for shareholders to put more money into project 
8. Still not mining despite cash influx and new properties for some reason
9. Greg Gibson resigns
10. RCG defaults because no money is being made 
11. Sprott gets the project for basically nothing

So strange that the project failed when there was ample opportunities to make it work. To me it almost seems like the project was set up to fail when it was taken over so Sprott would end up getting the properties.

[damianchosenone]

100% One of the first offers prior to final bids was the pay sprott down to 5.5 million( means they would get paid 4.5 million for dip and interest) and be back at where they originally borrowed. The rest of the loan would be paid down with production and cash flow. The group offered to pay the entire CRA debt, pay the unsecured creditors part of their debt and put 7 million towards the project

[LeftBook]

I admire Sprott Lending's savy in this deal. I was expecting RCG's management, CFO, board of directors to be just as savy. So negotiating better terms for the assets at risk, risking less assets, not putting the company at risk of default, etc.

[damianchosenone]

Gary could care less! Gibson was praying for it to be gobbled up by Sprott. Called it his top 3! Jack did the stay of proceedings so he could get his money back. Told peopel worst case scenario he expected was a shell. Told a friend of mine that last 4 bidders were cash heavy. Really? International corona was cash heavy offering 6 million?  Remember Jack and crew rejected million of afinance

[LeftBook]

Gary has some skin in the game. He is owed $2M by RCG. There isn't sufficient assets to pay what he is owed. He owns 17M shares now worth $0 but which control off balance sheets item eg tax credits. Gary is the Chairman and Director of RCG Gibson was a director and chair of the technical commitee. Jack is interim-CEO and CFO The company should have recognized that the improvements might not