OK here you have it, the GEO restructuring:
Vendors pay US 825K to RC for B warrants: RC debt reduced accordingly
US$ 2,922,000 account payable settled, translate forgiven
GEO pays a total of US800K out of pocket=
US $2,947,000 X 1.56= C$4,600,000/17,471,000 new shares=26 cents
You can value San Francisco's "certain equipment" as you wish, but it appears that Butler, an equipment company is going to broker a sale, or is willing to take it in lieu of. Today's Northern Miner mentions a value of US1.5 million for that. Excerpt, note mention of merger aspect.
"Geomaque is being equal vigilant in cleaning up other items on its balance sheet, having ended the second quarter with a negative working capital of US$4.8 million. Among the possibilities are the sale of equipment from San Francisco (the crusher alone is valued at US$1.5 million) and a merger with another mining company."
Who knows what mining equipment is really worth in this climate? GEO will keep the first 500K of the proceeds, and Butler like a good used car salesman keeps the excess (one million?). At any rate GEO liquidates an off-balance sheet asset I wasn't even accounting for in my valuation model.
The real question, is now you have two mining vendors in possession of 23% of the outstanding shares of GEO. What would you do if you had it? Is there some kind of management control clause, that gives Paterson defacto voting rights and control? The IR doesn't mention that part.
There you are guys, more of what G_T likes to call Russ Winter, "pump and dump" work. It's nice to feel appreciated. Maybe next time she can bird dog this? Oh, I forgot, she's too busy being a pain in the ass. Anyway look out, make sure you're taking your paranoid medicines, because here comes the "pump" part: GEO is a steal at a dime! And G_T, I know you have to know this, but I am not a Muslim (not). |
