Replies to post #1051 on Santa Fe Gold Corp. (fka SFEG)

[Gaintrader]

Interesting... but these points provided have nothing what so ever to do with the point I had made.

Specifically in addressing my main point, "by the time SFEG get(s) (back) to mining again, their financing partners (Waterton and Sandstorm) might own them." I offer the following;

Santa Fe is currently just as BANKRUPT as they were before the SEA with Canarc was effectuated in July. Santa Fe soon may very likely be forced into issuing a lot more equity to their current senior secured creditors, Waterton Global Value, L.P. ("Waterton") and Sandstorm Gold Ltd. ("Sandstorm"), just to avoid defaulting on these currently outstanding notes. Then, even more equity financing will need to be issued to execute any future plans as well (like remaining a going concern).

Santa Fe is certainly in a no cash flow condition, and has 20M in secured debt to service too. Waterton and/or Sandstorm being "senior secured creditors" could end up accepting large enough equity positions on past due payments to easily pursue a leveraged buyout, or could alternatively choose instead to declare Santa Fe in default on currently outstanding secured notes, and then simply pursue a hostile takeover of any/all secured assets.

Love or hate Canarc and or their management for any valid reason you may choose, but don't attempt to imply Santa Fe's current financial hardship condition was created in any way by Canarc or their short lived management of Santa Fe's operations.