I think GCY will fight another day. As a large holder of both GCY and WGX, I would be very happy for WGX to take them over. If I was offered 40 million worth of WGX shares (roughly 1/2 of current MC) I would not sell.
Reading between the lines I am of the understanding that GCY will be very much still in business although the business model will be completely changed.
By going into VOLUNTARY suspension with over 25 million in liquid assets, they will be able to clear most short and medium term liabilities.
The recapitalisation will not be for an operation re-start.
GCY will recommence trading as an explorer with a plant. This plant will be offered to surrounding miners on a toll treatment basis. I believe there has already been interest shown in this service.
GCY could spend years proving up their dirt before actively mining at Dalgaranga again.
The timelines will be mostly effected by drill results and gold price.
There is no need to sell the plant for cents in the dollar.
I'm estimating a capital raising in the order of 60 to 80 million.
Sure there will be dilution however GCY MC was already peanuts.
I'm not losing any sleep over this. This is not a Wilhuna mining call in the vultures to pick away the flesh equivalent.
WGX Price at posting:
87.0¢ Sentiment: Buy Disclosure: Held
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