KCN 0.79% $1.27 kingsgate consolidated limited.

TDG Gold - did management do any their diligence?

  1. 192 Posts.
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    We have been doing additional research on the background of TDG and the people surrounding the company. The properties they currently own look to be a basket case of assets that were cleverly spun off to avoid environmental liabilities. Please read the following:


    Shasta-Baker mine has caused concern amongst the Takla First Nation, whose remote territory contains it, for decades.60 This small gold mine is emblematic of the pervasive negligence often paid toward past-producing mines where ore reserves are not yet depleted, so owners hold off on full closure. Since being placed under care and maintenance in 2012 by the nowner Sable Resources (the mine very recently changed hands to TDG Gold61), Shasta-Baker has had an abysmal environmental compliance record. Several environmental management plans (e.g., for controlling cyanide contamination) have been overdue since 2012, and basic surface and groundwater monitoring has not been conducted in most years.62 Comprehensive environmental monitoring, which was required to begin in 2012 on a 3-year cycle, has also never been performed.63 Finally, only after this site was profiled in the Auditor General’s scathing review of B.C.’s mining oversight,64 financial penalties were issued for Shasta-Baker’s non-compliances.65 However, stricter enforcement needs to start earlier and not lapse when mines go into care and maintenance. Still unresolved are the risks posed by the mine’s tailings storage facilities (TSFs) that contain potentially acid-generating material66 and seep into the groundwater.67 This is exacerbated by high-risk upstream dam construction,68 and insufficient information collected to determine the dams’ stability.69 Regulators have expressed concern about a future “environmental incident” at the mine,70 and inspecting engineers have recommended the TSFs be closed71—this would align with expert recommendations that B.C. retire at least 60 TSFs across the province to get on the path toward zero tailings failures.

    Sourced from Page 6 on https://reformbcmining.ca/wp-content/uploads/2021/05/BCMLR-Dirty-Dozen-2021-report-web.pdf
    *I would advise you to read the footnotes*

    https://mines.nrs.gov.bc.ca/p/5fa1e42c4635c865df00d5bf/docs - I advise reading the 2020 Annual Dam Safety Inspection but also the other historical documents.

    My greatest concern is that Talisker Resources acquired the TDG assets in a cashless deal in 2019 from Sable Resources; the Chappelle (Baker and Multinational Mines) Property; the Mets Lease and the Bot Property. South-central B.C. projects include the Tulox Property, the WCGG Properties, and the Spences Bridge Regional Program. They decided to keep Tulox, WCGG, and Spences Bridge - the rest they spun off into TDG in another stock only deal. With this transaction, TDG Gold has acquired and assumed all liabilities related to the Properties. Connect the dots with the information above. Talisker wanted nothing to do with the environmental liabilities that those assets had, so they gave the hot potato to TDG Gold.

    Then... after announcing the Nueva Esperanza LoI, which had created a buzz (and liquidity) Talisker Resources, on July 9, 2021, Talisker sold 4,743,425 of its TDG shareshares at a price of $0.49 per Share resulting in aggregate gross proceeds of $2,324,278. The sale was facilitated through the facilities. Prior to the sale, the Acquiror held 18,973,699 Shares, representing approximately 29.5% of the issued and outstanding Shares. The rest of the shares are locked up for another 24 or months or so.

    I am not sure who the hell we are doing business with but I hope you all realise, we are spinning Nueva Esperanza off into a company that has acquired potentially significant environmental liabilities.

    What was the due diligence done on TDG Gold? This is all public information.

 
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