Resource Capital Gold Corp GDPEF

*** RCG DAMIAN PREACHING HOPE***

[LOCKDOWN]

Damian great to see you posting again ! Bankruptcy of RCG must have been a hard blow to you.Nice to see you post some hope for RCG share holders.Business requires tough decisions sometimes my research on bankrupt companies the common shareholders almost never recover any of their investment ! Can you explain why you think we will get anything for our shares?? No assets left and creditors to be paid ???

[damianchosenone]

25 million tax credits belongs to shareholders. If someone makes a proposal for paying off secured and unsecured creditors a million each, those credits are worth a lot more!

[LOCKDOWN]

Damian does Leftbook see it the way you do he is the numbers guy?

[LeftBook]

I agree with Damian. The tax credits belong to the shareholders and have significant value to a company with taxes owing.  The company is owned by the shareholders.  At this point it has insufficient assets to pay off the creditors including CRA. It is possible that an existing shareholder or new shareholder adds sufficient cash to pay off the creditors including CRA.

[LOCKDOWN]

Leftbook do you really think what you and Damian are saying  is a reality all my research is saying delisting and common share holders will be at total loss? My broker is saying zero is the reality and RCG becomes a tax loss on our personal accounts and the shell will give no value to the common shareholder.How can you and Damian preach a different reality than what is an obvious outcome

[LeftBook]

    First my sentiment.   possible/likely outcome 2019 1. the company declares bankruptcy 2. gets delisted from the exchange 3. shares are worth nothing   unlikely to repeat scenario from early 2016  1. company wrote off Indonesian assets 2. seemed to be bankrupt 3. someone invested in the company paying off debts  4. the company was a shell

[damianchosenone]

Cra is owed by Jack and directors. They are the ones that withheld taxes from workers cheques and made those foolish decisions

[LeftBook]

PwC listed CRA as a creditor If I understand it correctly Jack and the other directors are on the hook for the amount owed to CRA if/when RCG fails. If on the other hand someone invests in RCG then RCG could use that money to pay off CRA.

[LeftBook]

Hard to see how this works out even if CRA gets paid. Below is an estimate of the two balance sheets   ---   Sprott Lending balance sheet   ASSETS Development property     2,200,000 Exploration assets                         0 Reclamation bond              

[damianchosenone]

Leftbook- someone can make a proposal to offer secured creditors ( sprott) 1 million. ( they should take it as they already got all the properties and wrote off the project). They can offer unsecured 1 million ( they would take it as well because at this point they have 0) and offer is 2 or 3 cents a share or shares in their company ( we would take as we have 0) . They can pay installments for Cra

[LeftBook]

Hypothetically a shovel ready company could acquire the shell for the cost of the amount owing to CRA, and then pay off all liabilities with tax savings. Some, like Gary Lewis, might prefer shares to cash. Creditors might elect to take haircaut for cash now. Sprott Lending may or may not settle for $1million now.

[LeftBook]

Update balance sheet again. Correcting for items related to real property including liens, reclamation bonds, asset retirement, etc     PwC wrote ... As the sale does not provide sufficient proceeds to satisfy the secured debts owing by Resource Capital, the group does not anticipate being able to file a viable proposal to its creditors. As a result, Resource Capital expects to

[LeftBook]

Damian wrote: someone can make a proposal to offer  secured creditors ( sprott) 1 million. ( they should take it as they already got all the properties and wrote off the project). They can offer unsecured 1 million ( they would take it as well because at this point they have 0) and offer is 2 or 3 cents a share or shares in their company ( we would take as we have 0) .  They can pay

[damianchosenone]

The 2.2 million liability would not be included as sprott lending took that off as forgiveness when they acquired the 3 properties. The proposal would also not include the cra debt. I spoke to cra and the directors and jack have to pay that

[LeftBook]

Yes. RCG doesn't have a liability to Sprott Lending. I assume that RCG still has to pay PwC, Jack, etc. Lacking a number I assume it will consume the entire 2.2M of the sale of the properties. Can RCG be acquired if the Directors don't pay CRA ? If not I will assume the Directors will get it from RCG one way or another.

[LeftBook]

Digging a little deeper.   proposal (1) offer secured creditors (sprott) 1 million (2) offer unsecured creditors 1 million (3) 2c per share offer. Equivalent to $3.5M (4) Unsecured creditors might be offered the possibility to convert an offer to shares.   owing Accounts payable       5,270,353  Lewis payable          

[damianchosenone]

The 2.2 million was forgiven by sprott lending so it is not owed. Jack and pwc are owed less than that. Also the 2.2 million total was not used up fully. Jack and PwC made in the insolvency agreements that they would get paid first out of the the 2.2 dip. Since sprott lending acquired the properties, they had to pay the 2.2 million dip to the courts and pwc and Jack

[LeftBook]

Thanks for the correction Damian.

[LeftBook]

  Digging a little deeper. corrected Unsecured creditors might elect to convert that offer to shares.     proposal (1) offer secured creditors (sprott) 1 million (2) offer unsecured creditors 1 million (3) 2c per share offer. Equivalent to $3.5M   owing Accounts payable       5,270,353  Lewis payable          

[damianchosenone]

There is a group talking with a lawyer now. I know they also have a promise letter from lewis when it was reliance resources that they were going to make their money back. There is lots of proof that things were predetermined to make this company fail and go bankrupt.

[LeftBook]

It is going to be challenging for the group from the Reliance to prove that things were predetermined to fail. therager and others made a good case that Dufferin's gold was underdefined at least in comparison to other projects. RCG itself said that was ... not basing its Dufferin production decision on a feasibility study of mineral reserves demonstrating economic and technical viability (1)

[damianchosenone]

Group has interviewed several former workers that have told them of the wrongdoings onsite. Gibson signed the deal for the sprott lending facility. Gibson leased faulty equipment from a subdury facility he has a large part in and then charged rcg to fix the equipment and drained their cash. I myself even have written testimonials from site superintendant about the wrong stuff that happend at the

[LeftBook]

so basically 1. RCG management signs credit facility agianst all properties 2. Management runs project to drain cash forcing the company into bankruptcy 3. Weak market ensures that all properties go for next to nothing ** ** also possible that no one wants to play ball with Sprott Lending and the gang If all these problems are related to Sprott looking out for themselves then management shouldn