It likely doesn't make a difference to the FG SH. But there is a small chance it may indirectly. Technically the SH still owns the mine even if the company goes under. But the lenders get dibs first. And I have never heard of the SH ever getting anything left. Usually the secured lenfers have a fire sale and want to sell the assets quickly and anyone who can purchae it at their amount they want to recover gets it which leaves nothing for the unsecured lenders. Even if there happens to be a bitting war and the sale goes above what is owed to the SLs, they usually add fees and such and pad it enough that they can grab the extra as well. But if they hold it and go into production... A successful goldmine of that size is worth more than the 20 million that is owed to them. So the USL have a claim against it. Now there may be some legal way to stop them, but that may cost as much as partially paying them off.

So why does that help? FG has 50 million in NOL that they can carry it over into a merging entity. That is worth alot, but the 8 million in unsecured loans is still hovering above them. But USL can be dealt with easier, since if the co goes under they usually get nothing. So they are willing to make deals to get something or postpone when they can. So the small amount the USL get from the SL or the hope that they may get something some day may keep them at bay for enough time to utilize the 50M NOL carryover.

Thats a lot of speculation. Essentially its better that they are trying to put mine into production than a fire sell. You may even choose to invest in the SL if you believe in Relief canyon.

As for me and a lot of the investers, we bought at such a high price a few years ago, that 5 cents or .5 cents doesn't make much of a difference its essentially zero. But it sounds like you (MTS) were a little smarter and get in on the cheap. So keeping FG a viable entity may recover some of your losses or even make you a profit. So it should be interesting to watch. If they can keep the USLs at bay, the 50M NOL and the public identity is a lot to offer Durarock. Also I have been reading the loan agreements and it keeps stating "properties and all future improvements" is what secured the loans. So all the conveyers, processing plant and lab will get absorbed by the SLs. But what about the drill rigs? Are they part of a property? FG has ~1.5 million worth of drill rigs and that would be a big asset to Durarock.

I am probably grabbing at straws. We will wait and see. Good luck to all.

-Y