TSXV:GBU - Post Discussion
Post by
SilverSam on Mar 12, 2024 10:37am
LOOK TO CRYSTALLEX...
If GBU is to survive as a mining company, it will likely have to go the route of Crystallex, which needed to raise funds in order to continue its litigation against the Venezuelan government.
According to BNN Bloomberg,
"
Tenor helped finance Crystallex International Corp.’s litigation for the past decade in hopes of one day receiving an undisclosed portion of any award the Canadian gold miner won in challenging the late Hugo Chavez’s 2011 decision to revoke its license for one of the world’s largest gold deposits." "Tenor extended an initial $36 million debtor-in-possession financing to bankrupt Crystallex in 2012 for the prosecution of its claim against the Venezuelan government, according to court documents. The loans jumped to a total of $75.8 million as of 2017."
"As of 2014, Tenor had rights to 70.5% of the net proceeds — based on loans totaling $62.5 million at the time — after taxes and payment to creditors. It also got to appoint two members of the company’s board, including founding partner Robin Shah."
As with Crystallex, GBU shareholders will likely be left with a very small piece of the settlement pie, should the company eventually prevail in its goal to reach fair compensation.
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