That’s the big question. If it wasn't for gold above 1400, then it would be an easy answer: No - chapter 7 imminent. Bit that gold price makes things interesting.

The auction is the big thing now. If the auction brings what the mine is worth, then the creditors could be paid off and FG would come out of ch11 a viable company with the common shares intact. But BK sales tend not to be top dollar sales. So again, it doesn't look good. But besides price of gold, there are three other positive things.

1) The NOL rules states 51% of the company can not change ownership. So they may need the common share holder (to some degree).

2) The operations manager (though hired by Platinum) is supposed to be neutral. And for what I have seen he is. He is suppose to try and get the highest amount for the mine and not just enough to get the creditors paid off.

3) The other is Senetek. They own 1/3 of the mine and are hungry to keep owning it and running it. So, the bidders may get the impression the min bid is really the 20M owed and thus we may see higher.

If they get 27.4M, FG is out of BK and a viable company. If they get ~24M, the secured and priority creditors are paid off and the unsecured creditors get paid in newly issued shares. FG will be out of BK and viable, but there will be at least a dilution and possibly the common shares are in jeopardy.

If the mine goes for 20M or less, Terry Lynch will have to find outside funding. Possible, but difficult and the common shares could be voided.

Between 20M and 24M is a gray area. Some funding is needed and the common shares become questionable. And even if they become safe, they will be highly diluted.

We will see.

-Y