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Re: Yacknl post# 4852

Monday, 06/18/2012 1:33:18 PM

Monday, June 18, 2012 1:33:18 PM

Post# of 4875
So the new lawsuit addresses some bit of the gap between what seems to have been happening here, in December of 2010, when Canarc had agreed to acquire the assets:

http://www.marketwire.com/press-release/Canarc-Agrees-Purchase-Relief-Canyon-Gold-Mine-Assets-Nevada-Arranges-Cdn12-Million-TSX-CCM-1372237.htm

And here, in August of 2011, when Sagebrush announced that they had acquired the assets: http://www.techagreements.com/Recent-Deals.aspx?pressreleasenum=5000656

Interesting that the Sagebrush announcement doesn't say anything specific about the terms, but, that should be available somewhere in the proceedings of the BK if its not elsewhere in their PR ?

That first link above contains a pretty good overview of the property and its history... but, for some reason that I'm still not at all clear about, Canarc opted to back out of the deal ?

Was it just that they didn't get the $12 million in financing they needed to close the deal ? Was there a reason that they didn't get the financing ?

FWIW, following the paper trail that exists here, it appears there's a solid enough bit of trend data in relation to basic valuation...

FGOC shows that Platinum thought that the Relief Canyon project had a loan value of around $10 to $12 million during the FGOC tenure... with the BK showing that they were expecting to be able to foreclose on it for that amount that was due, and still expected to get most of their money back out of it. The "Chinese deal" maybe valued it a bit more, but, then, it seems the Chinese had "other reasons" to find their properties interesting. Senetek, the Crosby/Ryan partnership, thought it was worth that amount that was owed, but also failed in putting a deal together. And, then, given the FGOC management sucked and First Gold failed to attain production, failed to keep the project funded, and went BK... it was eventually bought out of BK, twice, each time basically for the value still owed to the bank for the prior loans?

From that, I get that there were apparently a good number of people who thought that RC was worth what was owed on it...

That still leaves a "bottom line" value of around $10 million, which, if you divide that by the 200 million PGLC shares, justifies a valuation of around a nickel a share... with PGLC trading now for $0.33 a share and facing some uncertainty, given the filing of a lawsuit over the method by which they managed to acquire the property...

Granted, PGLC has added some leases, and done some drilling... but, if they lose the lawsuit, that's not going to do much to help them...

So, at this point, it's not overly clear to me that the value the property might have should actually translate across into a share value for the new owner... given the clouded history...

PGLC does have some cash, which, if it doesn't all get spent on the exploration effort, or burned up fighting the legal battles, would be worth $0.035 a share...

Amazing to me that Relief Canyon has been "12 months away from production"... for the last 5 years... and now looks like it will continue to be "12 months away from production" for the foreseeable future...









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