Firstgold Corp (fka FGOCQ)

[7Secret7Service7]

BIDDING WAR!!Great news!!

Considering that Firstgold had lined up a $26.5 million deal with China's Northwest Nonferrous International Investment Co to buy a 51-percent stake in the company and develop the Relief Canyon(when gold was under $1000). A fair estimate would be at least triple that for %100 ownership of the mine!

As I have posted in the past the "Value of first golds equipment alone exceeds the secured debt! http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55136919

The Court - the sale will take place
under Section 363, in order to attempt to maximize the value of
If the assets, and perhaps there will be bidders that will exceed
the amount of secured debt and there would be additional
proceeds for unsecured creditors(shareholders), I don’t have any objection to that! http://www.sidedraught.com/stocks/FGOCQ/04202010%20Hearing/Transcript-%5BCourtesy%20Iggles2009%5D-Reno_Firstgold%20Corp_042010.pdf

We all know that the Merger or Acquisition is not organized around any of the Assets that are now possessed as “collateral” by the secured Lenders:

MR. HARRIS: We’re not going to reorganize around the
real and personal property collateral of Platinum
THE COURT: What’s left?
MR. HARRIS: Your Honor, we have approximately $40,
$50-million-dollar NOL that we want to preserve, and there is
benefit for the creditors as far as money.

Lets put the Merger/acquisition aside,

I think it is reasonable to estimate First Golds current assets would sell for WELL over $50M. Here is a recent financial report valuing our assets @ $105 million - http://www.scribd.com/doc/30832353/FGOCQ-March-2010-Mor . For this calculation lets use a “low-Ball” estimate of $50M , with currently just over $190M shares outstanding , $30M realized to our stock values our shares over $.14 , this is not including the NOL’s that are being put to use to merge with another company.


We cannot rule out the "factor" that First gold hasnt lined up a deal to Merge with the company that acquires the canyon!(SELR?)