Thx MTS, and glad to see you still on the board. Not sure who is left anymore.

What I get out of the Senetek's 10-Q is that the RC mine will unlikely be sold over the 20M owned to the creditors. The court just thought it might sell higher, so did not allow a creditors sell months ago, which the property would have gone to the first buyer with the 20M. According to the 43-101 in the FG website (which is old) and/or the monthly statement listing a 105M worth, the judge was hoping it would sell over 20M and some money would trickle to other creditors.

But from the sound of the 10-Q the bids have been low. And the newly released 43-101 the property is worth around 20M or less. So best case is that the RC mine removes the debt from Plat/Lake and thats about it.

If there is still a merger with Durarock in the works, and there is some evidence that it may (I mention in a previous post) there is about a 3.5M hurdle to jump to make the deal occur. You can issue stock to creditors that gave loans, but stock doesn't work with the IRS or AT&T. There is about 3.5M debt in tax, goods and services that needs cash. So one would need a lot of cash and issue a lot of stock to just hit break even, not even talking about the money needed for mine investment. Not sure if the NOL is worth it. Especially, since I don't think there is really 40M-50M of NOL that was mentioned in court. There was only 19M of NOL reported in 2008. I can't imagine they burned 21M in two years and one of those years they were shut down. I think the NOL is closer to 30M. So I don't think 3.5M this hurdle will be easy to jump.

But everything is negotionable, even the IRS. Faced with nothing or something. Most creditors will settle for less. They also can be forced by the court.

If the merger does get completed, what will the stock be worth? Not much, I'm sorry to say. FG doesn't really need to hold on to the old stock holders at all to keep the NOL. So stock may be worthless. If they do keep the SHs, there will probably be a 10 to 1 reduction in old stock ownership. The stock will be given an artificial worth, as high as the court seems reasonable. This will be around 30M to 40M. I get this estimate from other examples, especially Steele resources, which is similiar in its merger and CEO. New stock was sold at $2 with about 11M shares outstanding. FG Will probably try to force the creditors with a $2 stock, the new stock holders will probably get a 1 to 1 warrant. At most there will be an artificial 40M value (20M shares outstanding - just guessing for this example) which will almost immediately the stock price will drop to 20 cents (Steele dropped from $2 to 30 cents and the selling pressure on FG will be higher do to creditors selling). Thus previous stock holders shares will worth an equivalent of ~0.4 cents (my guess or somewhere be tweem 0.3-0.7 is my estimate using different valuations). Whcih the traders who bought at 0.1 cents will like, but does nothing for SH like us.

Then we will own part of an old mine that the FG wants to take back into production one day (sound familiar?). The last time FG tried to do that it took 15 years and they missed.

Even the best case scenerio is depressing :-(

-Y