Firstgold Corp (fka FGOCQ)

[downsideup]

I've seen the same old "we're going to make money for you by reprocessing the old mine tails" scam replayed at least a half a dozen times in the last five years, not just at FGOC.

The logic of it appears it is exactly that which you defined... expecting, first, that some financier will get scammed into creating the capacity... which will only prove to be useful after the public market investors are shed and the capacity is applied, without the obligation to them, in addressing production using new ores...

I don't think Platinum was ever "scammed" that way... rather than being a part of the group from the start who were willing to allow the effort to proceed, to that point, expecting investors buying the stock would cover the development costs... while knowing they'd end up owning the asset package, and able to use it... without an obligation to shareholders.

That's why the timing element in their repayment schedule was so critical. If they'd left enough time and flexibility in the financing arrangements that it could easily enable FGOC to start moving new rocks into the mill... which should always have been part of the plan... then, they'd never be able to take it on the cheap...

The economics are pretty simple math... X $ per ounce versus Y cost and Z ounces per ton... makes it clear if the mining of new ores is economic or not. If they'd planned to pick up right where Pegasus had left off... they'd have made it work.

I think the only question I had re Relief Canyon, from the start, was... who is going to end up owning these valuable assets bought at a fire sale price... after the FGOC investors pay for them.

Management wanted it to be them...

Platinum wanted it to be them...

The Chinese wanted it to be them...

Etc.

Now, Pershing wants it, and maybe has it... making them only the latest in a long line... and that it appears that they, or one of their subordinates, knowingly violated their contracts in order to get them the assets ? Why am I not surprised...

That they're still fighting among themselves... doesn't do much to alter the fact that FGOC holders got thoroughly screwed by everyone involved.