They time was up on the 29th but yet we still have not heard a single word about what is going on... But that is pretty normal for Firstgold unfortunately.
I like many others have been invested in this stock for a long time and invested a lot of money. Started investing in 2007 in the 60s, kept buying up to the 80s, and continued to buy into the teens bringing average down to the 40s. I have a large position and have lost more money then I care to even think about on a daily basis. This company had everything going for it and has the potential to be a real winner. But like the majority of companies both large and small the collapse of the economy and credit markets was just too much to swallow. When companies with market caps of tens of billions of dollars are unable to secure financing then the little guys are pretty much out of luck. In FGOCs case they were able to secure financing but unfortunately the terms of the deals were less the desirable. They got the money they needed but had little time to come up with the money to pay it back. And clearly the lenders were more than happy with the terms of the deal because they knew darn well that they either get their money back or get to seize an up and coming fully permitted gold producer in Nevada, thats a win win situation for them. And their actions in March and April pretty much prove it. March 31st they grant a forbearance agreement until April 30th with a chance to convert $4 million in debt into shares at a price which could have made them a nice profit. But then a mere 2 weeks later when the April 15th payment came due they decide this whole forbearance agreement thing just isn't working for them and then call it off. But of course they don't care that it caused the price to crash because they get first dibs on the company and all their assets. They would rather just have the mine and churn out millions in gold then get their loan back. I am sorry but that whole situation just reeks of a bait and hook job.
And now we find ourselves in between a rock and a hard place. Who wants to finance the company now that everything has gone in the crapper? This company has a lot of potential but who knows if anyone else is going to let them show it. I am of course pissed I have lost a ton of money but I know I was way over invested in a speculative company and only have my self to blame. I sold about 1/3 of my position and letting the rest ride until we find out what happens next. If the entire economy had not crapped out I think we all would be in a very different situation where the necessary financing would be much easier to secure. Granted FGOC has not helped their situation but countless delays and a complete lack of getting information out to shareholders in a timely matter. A little news here and there sure would have helped to bolster some confidence in what they were doing.
So who knows how long we have to wait to find out what the next chapter in this story is going to be? I sure hope it is soon because the waiting is killing me...
PharmD4
