Bradley Johnson's questions to GOLD RESOURCE (GORO) leadership • Q3 2023
Question
Questioned a past transaction involving the sale of assets to Green Light Metals, where debt was converted to equity instead of a cash payment, and asked if the cash could be recovered. He also raised concerns about the credibility of this deal.
Answer
The executive clarified that the deal was made by Aquila before Gold Resource acquired them. Converting the unsecured debt to equity was the only viable option as Green Light couldn't pay cash. The transaction, while perhaps looking questionable, was legally vetted and approved by Aquila's independent board at the time.