RE: Really, at issue is the tailing Hable was an integral part in acquiring this property and negotiating the tailings project. IMO this takeover of SAX assets were on the table for sometime bet Hable and other collegues. The present BoD are trapped in a corner they have to halt on Monday pending news.
The tailings is part of SAX asset and had a contractual agreement with Sociedad who made Samarium of the contract termination...(may be a legal issue to deal with). But I really view Hable NR more of a strategy than a issue to cap any out of control run up.
Couple things could happen here:
A counter bid because SAX property more than just one property and Colombia Crest to make a run at it knowing the value of the tailings.....
Current mgmnt tries to negotiate a cheap financing to further dilute SAX...subject to approval (I doubt it will be aproved) to fend of Hable majority holding.
Current mgmnt resolve differences and Hable makes a formal bid for 100% take over, then resigns
If Hable is successful:
He brings back the directors: who previously resigned...Roehlig, Walchuk, McMorran. Hable later look for a JV partner and even renegotiate with Sociedad.
If the Capital Costs to place the Tailings into production are US$ 80 million or less
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Net Profits to Net Profits to
Samaranta Sociedad Minera Until
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86% 14% all Initial Capital Costs are repaid to Samaranta, then
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70-85% 15-30% profits to Sociedad Minera increase 1% per year up to a maximum 30%
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If the Capital Costs to place the Tailings into production are greater than US$ 80 million
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Net Profits to Net Profits to
Samaranta Sociedad Minera Until
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88% 12% all Initial Capital Costs are repaid to Samaranta, then
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75-87% 13-25% profits to Sociedad Minera increase 1% per year up to a maximum 25%
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"With this agreement Samaranta has the potential to generate a resource in a shortened period of time and then bring it into production much faster than a greenfield project, assuming positive economics," stated Volkmar Hable, Director of Samaranta Mining Corporation. This is potentially a game changer for our shareholders.
The agreement is subject to regulatory approval if and as required.
In connection with entering into the JVA and in recognition of the potential significance of this project together with the potential prospectivity of the Guadalupe Property, the Board of Directors has recognized the importance of having greater senior management presence in Colombia.
In order to best address this situation, Dr. Hable, whose efforts were integral in acquiring the rights to this asset and the Guadalupe property, has stepped down as President and CEO and has been appointed Executive Vice President, Mining and Exploration with a view to focusing his activities on the Company's Colombian Projects.
Gunther Roehlig, Director, has agreed to act, and has been appointed interim President and CEO until a qualified senior operations individual is identified to lead the Company in its next phase of development.