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>>This thing is about to explode. You just watch.
GBGLF will go not with a bang but with a whimper.
>>OK, this will sound silly but the chart looks like a possible double bottom has formed @.0005. (Finny, I already said it was silly)
Just remember that you are essentially floating in a toilet bowl with GBGLF right now - seeing a double bottom formation does not necessarily portend great things to come for you ;)
>>There has been a price dump for a while now if you have not noticed.
I may be the only one that has truly noticed....it's been amazingly consistent and absolutely relentless.
Looks like they all ripped between .0006 & .0008 - ouch.
>>Hi GBP,RZJ, could we propose to ask GBGL to forward sale some gold to gold royalty company, e.g. royal gold or franco nevada, to get some cash to restructure the debts and re-start up the gold mine, and stop using the long slope mining method, but to use the traditional mining method to avoid the dilution ?
My suspicion is that there is not enough confidence in the ability to achieve production for a royalty company to enter into a forward sale arrangement and that this is the reason it wasn't done. Would you give the current mgmt team 200 or 300 million in exchange for a slice of future production in light of what they did with the last 800 million?
>>If you consider the conditions and price that WITS obtained, this is very clearly robbery.
How is it robbery? It was an open bidding process. No, this is what happens when you design a mine poorly and then run out of cash at the worst possible time, plain and simple. Wits is just saying the same things that GBG did about Burnstone....like most mining execs, its about selling the sizzle, cause there are plenty of fools out there.
Never had an angle, always had an just an interest in both bk and gold miners, as I've stated repeatedly when asked. a lot of folks on this board dismissed everything I said believing I had some secret ulterior motive....but everything has panned out more or less like I said it would (other than my guesses for sale prices being way high, not that I wasn't flamed for being delusionally low each and every time). I went and found Rick Rule for you guys to ask his opinion of Burnstone, and most everyone here convinced themselves i was talking to a Tim Horton's waitress. Sometimes things are just as they seem.
>>Dont blame the $10 victims, all the victims (shareholders) did was believe the high paid mining experts
Believing high paid mining experts is a foolish thing to do - they are highly paid with the very same money they are enticing you to fork over.
>>GBG seems to be contemplating $10 for a 600M investment
GBG effed up the engineering and geology - 600M mostly down the drain.
You want answers? The mining sector sucks really bad right now. It's what I've been telling you guys for a few months.
It's crazy.....nobody saw this price coming....that's fo sho.
.oo22 pps isn't giving you enough indication WI?
Are you still loading the boat? Unreal. Jesus Christ can't get blood from a turnip any faster than Ron Thieesen....know what I'm sayin?
I'm not quite sure at this point to tell the truth. A simple offer wouldn't require Berg's consent, but according to the extension this was a caveat that the offeror attached - which suggests to me they were not interested at this time in working through the process if Berg was hostile to it, given his control on both the debt and equity side of the capital structure. It's not an auction here - there has never been a 363 motion - which makes this case highly different from most. Was this offer below the claims hurdle or simply below the $$$ amount that Berg is willing to sell at - given that they've never lined this up for auction, it has never been for offered at the best available price (in fact it's never really been offered for outright purchase period). Also not sure how this reconciles with the recent extension of the ROTH and KPMG engagements which were looking for an equity raise. Fee apps are due out soon - would be nice to have a look at what the lawyers have been billing for the last 3 months to get a picture of where this is heading.
They have to file a deregistration stmt with SEC, I don't see where Great Basin ever did that, therefore any buyer accumulating shares without filing would be in violation....in addition to needing to have their head examined ;)
>>Finny says they are the smart money...so do they now own 90% of shares
Smart money never touched the shares once they started trading again after filing CCAA.
GBG was a PFIC - reporting requirements have nothing to do with the foreign ordinaries vs dual listing.
>>CS is owed way more than that. They are going to loose a lot of money just like every one else.
I didn't say they weren't going to lose, I said they will lose least compared to other creditor classes. They can definitely credit bid for the property if they want to.
The requirement to file a notice of substantial ownership is a burden on the buyer - not on the issuer; if you are acquiring a substantial position, especially with designs to wield influence, you'd invite all sorts of legal problems if you didn't disclose, regardless of whether the shares traded on an exchange or OTC.
>>CS is only going to get what a buyer will pay.
CS as a secured lender can take the property at the end of the day if other bids are below their secured claim, which it sounds like they are.
>>just have to do a little research on the foreign exchange to find out you do not have to disclose this
GBG was a reporting issuer with the SEC - please point me to a provision in the US or Canada which would provide an exemption.
>>That's stupidity but then how do you explain where shares are going and why any one (remote chance of being an individual) or entity have been acquiring them?
The most logical explanation would be MMs who have gotten short making a market in the stock for the last several months.....or delusional types who still see some grand conspiracy buying .002 shares because they think it's going back to a buck.
>>If they have been accumulating for a long time now it could be a whole lot more than that..
So where are the FORM 4s or 13Gs with the SEC?
I bet when all is said and done it's CS that owns Burnstone - that's what makes sense - they wind up with the whole Burnstone shebang for just the debt they extended....and they have that side agreement on Hollister that has been referenced on multiple occassions, but which we've not seen. CS is the smart money - don't they they won't come out of this with the least amount of pain.
>>if you wanted GBG this is the cheapest way to do it...you buy the mine for next to nothing, wipe out creditors...then buy 50% of shares with a cost average of a few pennies...so for 5 million you own the shell and what ever you paid for the mine...lets say 150 million...so now you bought the entire company debt free for 155 million dollars..
If you managed to 'steal' the mine on the cheap, why would you throw it back into a shell in which you only own 50% and give away the other 50% to a bunch of strangers? That would make zero sense.
>>got the mine up and running and cash flow positive
Well, that was always the problem wasn't it. Even if one bought all the shares, they'd still have all the debt to deal with, plus the capex required to even try and mine it successfully. Cheaper to buy the mine at auction that acquire control via the shares....but it doesn't look like anyone was too overly interested in that.
I don't know - maybe something on docket. Not following this case, other than having seen the filing and walking a few blocks out of the way to eat lunch in their new Vancouver franchise. I really liked the value proposition of the restaurant - healthy, quick and relatively inexpensive. I think the current shares though are toast, especially given the preferreds that are hanging out there.
Bk judge approved the sale earlier this month....it was not at a price that would make anything possible for commons.
Ormet was a decent sized case....but it's over...Wayzata bought the assets for 130 mm....equity is toast.
Who coulda seen this coming? Oh yeah, never mind.
All else equal, I would honestly have preferred to see you guys win here....just not a good time to roll the dice on a gold miner.
;) - you are going to suck all the joy out of saying I told you so.
Looks like I guessed way high on Burnstone purchase price.....dangnabbit.
I'm back. 7 days completely unplugged. What did I miss?
>>Ugly at a penny is easy. Uh, Chapter 11. If you had called it ugly at 3 bucks, that would impress me.
In Chapter 11 it's determining what isn't ugly that's hard (and crucial) - they are out there, but this wasn't one of them.
(camping trip starts tomorrow - I know RB will miss me the most)
>>Good rule to follow...if Finny says it's ugly, must be time to BUY. Many miners near their 5 year lows. Good gamble right here.
Like when GBGLF was a penny and I called her ugly, right?
Beck is a ding dong. I prefer to pay attention to guys like Kyle Bass.
I love gold and silver, but I'm thinking it goes lower in the short term. China is cracking up - overnight rates hit 25% last night and China denies it, but it's alleged they had to do an emergency bail out one of their banks early this morning. Gold and Silver will both be bid, but in a deleveraging cycle with margin calls and redemptions begetting more margin calls and redemptions, anything with a bid is going to get slammed. At some point I do believe they will have to hit the reset button one way or the other, on a global scale. Maybe we are getting closer to that point as it could probably only be done under the cover of relatively extreme pain. Pretty sure the captains that are steering the ships are in uncharted territory, shrouded in fog, with vicious storms looming on the horizon. Hey, at least we'll get to live through interesting times. :)
It happens more often than most people realize, though it's definitely the exception to the rule.
Looks like it's gonna be an ugly day everywhere one looks.