That is a good basic question. I will give you a basic response:
NMGL merely purchased the only assets of FFGO. As we all know by now NMGL had no money to purchase the only two assets from FFGO. In lieu of monies used to purchase the only two assets NMGL issued to FFGO preferred shares with the value of $258,073,106. This amount if you remember was determined by the current value of gold at the time of the sells agreement. If NMGL had purchased all the outstanding shares of FFGO instead of only purchasing FFGO's only two assets, then we as the shareholders would have been entitled to know the record date immediately. The 8-K filing NMGL recorded yesterday has nothing to do with the shareholders of FFGO. The filing was filed to update the shareholders of NMGL.
Although Western is a subsidiary of FFGO, FFGO legally doesn't have to issue any dividends from this sale to its common share stockholders.
The question we should all be asking is, "How is FFGO going to pay its federal income taxes for this taxable event?" As stated yesterday, the company has no assets. However what the company does have according to the filing yesterday, it has preferred shares from NMGL. So maybe FFGO will have to borrow more money to pay its taxes.
The bottom line is either Western or its parent company FFGO must pay the taxes for this taxable event. Until the value of the newly acquired assets from NMGL is distributed to its shareholders, FFGO will have to continue to exist. It cannot become a dormant shell. So it is in the best interest of FFGO/Western to issue the extraordinary dividends sooner rather than later.
If and when this event occurs we will still have to wait for NMGL to redeem our shares. As we all have read yesterday it does not sound like NMGL is going to do this anytime soon.
As far as the response we received yesterday regarding the possibility of a 3% dividend, this can only happen if the two sites become an amusement park or an rv park. I say this because they made it very clear that NMGL has no intentions to develop the mines. If any of you would like to volunteer to work the grounds of these two sites, I am sure we would all appreciate your efforts.
Rest assured NMGL has been very honest and forthright with their position on the dividend issue. In addition they have clearly stated the shareholders of FFGO will have no say so in any matters related to these sites.
Keep in mind the majority of the shareholders of FFGO and NMGL are 1 in the same. Furthermore they are also attorneys. The mere fact they are attorneys would conclude they legally and meticulously worded every filing, updates and press releases to the protection of themselves, without regard to 100% of the shareholders.
In conclusion what we read and understand as laymen could have a totally different legal meaning. One thing is for sure as my daddy use to tell me there are only two things certain in life, "Death and Taxes" So, what we need to know is how FFGO will handle the taxes, cause death will take care of itself. (lol)
AI
