Consider the following 2 options:

1) Hardrock gets packaged as a separate unit all by itself and sold off to a major. GRC winds up with cash to use developing Brookbank, Leitch. Northern Empire, etc. Or:

2) The whole area gets packaged as one unit, sold off, and we all get a nice payday either in cash or in shares a major gold producer. Or:

1) A new company is formed – let’s call it Hardrock Resources. Downie and Sheridan come up with a valuation on the Hardrock project. GRC shareholders get 30% of Hardrock Resources, PG shareholders get 70%. I would expect that PG/GRC share prices would decline proportionally by the valuation of Hardrock Resources.

-Let’s assume that at the time of the spin-off, GRC is trading at $1.50, and PG is trading at $5, and each company has 100M shares outstanding.
-PG/GRC decide that Hardrock Resources is worth $200M and will issue 100M shares at $2/share.
-GRC shareholders receive 30M shares of Hardrock Resources(.3 Hardrock Resources for every 1 GRC share)
-PG shareholders receive 70M shares of Hardrock Resources (.7 Hardrock Resources for every 1 GRC share).
-GRC shares decrease by $200M * 0.3 = $60M ($0.60/share) and trade at $0.90/share
-PG shares decrease by $200M * 0.7 = $140M ($1.40/share) and trade at $3.60/share

Now a major, ANY major, can come in and buy the Hardrock for whatever price the board of Hardrock Resources can negotiate. They don’t have to buy Brookbank, Sand River/Leitch, any of PG’s red lake properties, if they don’t want.

2) Another option, is GRC makes some sort of offer on the other 70% of Hardrock. Personally, I like this option better. Using the same numbers as above, consider this:

-GRC offers PG $140M in shares (~93.3M shares assuming GRC is trading at $1.50)
-PG shareholders receive .93 GRC shares for every PG share.
-GRC now has 193M shares outstanding, and trades at $1.50
-PG market cap decreases by $140M, but they now own GRC shares, which gives them 100% ownership of Hardrock, plus all of GRC’s other assets (Mill, Brookbank, etc..)

A major, ANY major, can now come in, and buy the entire B/G camp (including a mill!) If they offer 1 Billion dollars, that works out to a bit over 5 bucks a share. I’d take it.