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Yeah its a bad deal and wont be upheld in court, but as of right now thats what GBG is obligated to pay. They just dont have time or resources to fight it now. THey have to have Burnstone sold by Dec 15th or Holister goes on the market and they dont wanna lose Holister.
Could you imagine how bad the first DIP offer must have been that they turned down?
All the information is in the filings. TR is right, they dont get a cent of the sale at this point. But they will fight it.
http://www.kpmg.com/Ca/en/services/Advisory/TransactionRestructuring/CreditorlinkSites/Great-Basin-Gold/Documents/Fourth-Affidavit-of-Susan-Taylor.pdf
On page 2 point 3a discusses this. 40% to DIP lenders and 60% to debters.
Well they made delist list. Wednesday they were on the suspended tab. http://www.tmx.com/HttpController?GetPage=ListedCompaniesViewPage&ListedCompanyTab=RecentlyDelisted&Market=T&Language=en
My personally feeling is that it will settle around .45. But I am looking for a big spike before it does that. Too many people are gonna look to flip this thing that have over 100k shares. I think the assets are worth more than that, but the company has failed the first go round and the price will reflect that
Yup, that would be a big bonus. Even if they sell it for 700M GBG walks out nearly debt free with HOllister and the Tanzania JV and that is still worth a lot.
Not as the deal is drawn up now. 280M (40%) would go to the DIP lenders, 420M to previous financing/court costs. Thats why for the first 2-3 weeks there was so much buzz about 'criminal interest rate'. GBG just doesnt have time to fight this now, but court papers say they will as soon as they get a bill of sale signed. My guess would be that a judge will put a 80-120M cap on what the DIP lenders will get, which is still ridic for 35M loan for 6 months
$450M + DIP, court costs, interest, etc. If you don't beleive it read the agreement. They are publicly available on KPMG's website.
Have they sent you anything other than the standard email they sent everyone? The delisting is in Canada - the TSX exchange. I dont remember seeing anything related to the NYSE AMEX listing in the states.
The current DIP agreement calls for 40% of the sale to go to pay back the DIP loan (yes, an unlimited amount) and 60% to go to the creditors. GBG sees none of it. They were hamstrung and had to take the deal, battled the interest rate (upwards of 900%) for a while and then moved forward getting the SISP in order. Thye will fight the interest rate after they find a buyer and the judge will probably lower it. They have until Dec 15th to sell Burnstone or else they have to put Hollister on the market.
If you dont mind i will just refer to you as hot damn
For 1.50 I would definately take the family down to Texas for a beverage party....
They have to have an approved offer on the table by Dec 15th that the ad hoc committee likes or else they have to put the hollister mine on the market. This labor unrest is unfortunate, hopefully something can materialize quickly. Would love for them to continue operating with Hollister and the JV in Tanzania.
AngloGold Ashanti Ltd. (ANG), the biggest African producer of the metal, started up mines as the industry and unions neared a deal to end a wave of South African strikes.
Gold Fields Ltd. (GFI), Harmony Gold Mining Co. and Anglogold agreed in principle on a deal and plan to sign an accord Oct. 25, the Chamber of Mines said in a statement late yesterday.
http://www.businessweek.com/news/2012-10-23/anglogold-restarts-mines-as-s-dot-africa-producers-prepare-for-deal
Back to work, back to work. Deal in place and signed 1 day after GBG is moved from the TSX to the TSX-V
My impression after reading it is they wanna force bankruptcy in the worst way and the judge has just been hammering the committee.
The Ad Hoc committee has been giving them fits but it looks like they are back on track.
GBG delists off the TSX on the 24th. I think that is where the 25th comes from. Once it resumes there, it should resume on AMEX, correct?
Good find Nagoya. AU took out a 115M loan on their line of credit yesterday in SA. .005% chance its related to GBG but its activity.
http://www.anglogold.co.za/Additional/Press/2012/Listing+of+new+financial+instruments.htm
GBG needs cash. The exercise rate (which it looks like the 2011 PR states $35, but this imo is not official since they probably reworked it)is very important. If they have Shanta's stock but can't sell it until it doubles, from current level $17 to exercise rate of $35, it does them no good in their bankrupt state. Shanta also just raised $50M of their own, which is 25% more than the DIP financing. Be interesting to see how this plays out. This is definiatly enough information to generate enough excitement for a good profit for those in at .12 and under.
Shes on her way to a modeling shoot and swung through South Africa, very plausible imo...lol. Feel free to rip on everyone else who has posted from that site. We need some sort of entertainment while they are halted. Chill
Latest and greatest:
Sierra World Equity Review is on the ground in South Africa! Sierra held a meeting today with Simon Nkomo who is well connected in this sector, afterwards Sierra told her team that he gave the "thumbs up" to a potential partnership between AngloGold Ashanti (AU) and Great Basin Gold (GBG) regarding the Burnstone mine. Simon Nkomo said that a 80/20 split would be the most probable outcome with the 80 going to AU and GBG getting the 20. Sierra is of the opinion that while GBG may only get 20% it certainly is a lot better than nothing and actually amounts to a substantial revenue stream as the Burnstone mine has massive untapped resources. Simon Nkomo also told Sierra that AU were very concerned about the wildcat strikes and were working feverishly behind the scenes with strike leaders to expedite a resolution.
http://sierraworldequityreview.blogspot.com/
Sierra report: Sierra believes that while things may seem frustrating now for shareholders of the company, this is the FRESH start the company needed and with the massive reserves at Burnstone mine this stock is going to BOUNCE BACK STRONGER THAN EVER when the dust settles.
But will it be our stock or a fresh issuance of stock?
Has anyone seen anything like this before? With only the subsidy in South Africa receiving 'protection' I dont see how the commons can be canceled as they would be in a normal bankrupcy considering the company is still active. If the SA mine reemerges with a partner we should be in great shape. The creditors are on hold until funding is found, ie a partnership, which Sierra believes will be announced this week. Can anyone tell me how we come out of this bad if they find a partner? Can we still be canceled?
I agree NC, the news says we are trying to savage the company and not go into full ch11. This could be very profitable for the .08-.12 entries still. They are fighting for as much as they can get. Unfortunately its wait and see
Its only suspended on the Toronto exchange - not the American ones. So once again it might mean something lol
They are not delisted, they are suspended until the news comes out. They are under review to be delisted. They are a fully disclosed company, they will never go to the pink sheets. They are traded on AMEX.
The halt will be until just after the PR comes out and that could be anytime.
I think his question was whether or not his funds settled because the stock was halted. And they have, so the second it trades he is able to sell if he chooses.
You can sell as soon as it trades again.
NM I see it on the Toronto ticker. If this were the news that it was halted for, NYSE would have coded it as a T2 halt. It is still T1. They havent released what we are looking for
Where you seeing that bdog? Nasdaq still says material news not yet released
Market makers back in business. We are close. Fingers crossed....glta
If they have applied for DIP financing they are filing chapter 11. Sierra is usually pretty spot on with their predictions. The interesting part of their call is that 'shareholders will get a positive resolution.'
Couldnt tell you how many times I have refreshed looking for that T1 to turn to a T2. And you dont even have to refresh the NASDAQ halted stock page.....TUMS
Earlier this afternoon they (re?)released the old financial data under the new name Embark. http://finance.yahoo.com/q/is?s=gfmd
If we had a LOI, this would not be a potential 10 bagger anymore. That is why there is a little excitement and run
Nibbled, lets see how it plays out next week
March 31st o/s 92.95M, May 16th o/s 99.95M. According to the subsequent note in the quarterly there are 15.7M shares converted. Almost half entered the market by 5/16, they should be about extinguished by now. Am I looking at this correctly? Or once the warrants are converted are they instantly part of the o/s?
TRBD .001x.0013, fast mover
TRBD - not G ;)