There were 3 parts to the rumor from last week and two and half parts of it have come true. 1) FG throwing in the towel, 2) May 11 2010 court date. 3) trying to merge with Durarock. I say 2.5 because the PR does not mention company name. But 2,5 out of 3 aint bad. So lets assume all 3 are correct.

So Durarock is a private company so it would merge into FG, though a name change my be wise due to all the bad press. I don't know much of the financial side of the business, I'm more technical, but here are the reasons and the effect.

Durarock instantly becomes a public company. Easier to get financing.

The NOL (~50M) will carry over. This I know the least about, but if you can carry over the NOL until profit is made, then the first 50M will be tax free? But not sure if it can carry over that long. If anyone knows please let me know how that works

FG becomes a junior exploration company again, not an almost in production company.

I am sure there will be a BIG reverse split. 5 to 10X. A lot of the stock will go to the Durarock owners, the rest made available to new funding. We will be diluted.

Unsecured lenders? This I also don't know the leagality. Do they have rights to future profit? How much is FG in debt to the unsecured lenders?

Generally, FG will worth a nonzero amount if the merger goes through.

Again, there is a lot of guess work above. Hopefully other posters can add or correct me (hopefully).

-Y