My Proposal To Rockcliff Management!This is my e-mail proposal:
Ken Lapierre
CEO of Rockcliff Metals
Ken:
My greatest fear has materialized, now that that a potential 10 to 1, roll back has been proposed. Since you probably already understand that I am opposed to this kind share price debasement, I would suggest to you an alternative or at least an additional option, if the roll back goes ahead.
The market needs to understand that Rockcliff Metals may offer some financial incentive for potential new investors and to keep the interest of most present day shareholders who may choose to stay invested with the company.
May I suggest that any future drilling plans might include a final drilling plan to fully realize the financial value of the Talbot deposit.
Drill the 1 km wide deep plate and determine it's apparent value. Personally, I doubt that the plate just represents some large block barren of any valuable mineralization, as it is so well positioned immediately below, an already well known source of VMS mineralization. And I doubt that anyone else including Hudbay, believes that either!
It seems absurd to me not to drill Talbot and fully discover the complete wealth that it offers Rockcliff shareholders! There is no legitimate financial reason not to do this!
As well, once this matter has finally been settled and the complete picture at Talbot is fully realized, then might I suggest to you that since Hudbay appears to have no intention of constructing a mine here for years to come, that Rockcliff Metals puts its 35% stake in the project up for sale to the highest bidder. This would be some interested party that is willing to wait the many years, for a very big payoff, down the road.
This such an obvious move to me that it amazes me that none of your management team have ever considered this option, to help monetize this portion of Rockcliff's assets.
If no miner is actively interested at the present time to acquire the company's joint venture interest, then certainly some royalty company would be most willing to do so! But they must know what the property is really worth!
You would be wise to also consider the possibility of finalizing such a deal and paying out the proceeds of the sale by a special income distribution to all Rockcliff shareholders on an equally weighted, share basis. I am sure that even Greenstone might be in favor of such a proposal. All shareholders would stand to benefit based upon their personal financial holdings in the company.
Additionally, if the roll back does go ahead, then all current shareholders might be more inclined to keep their shares rather than selling them immediately and thereby driving Rockcliff's price right back down to these lower values, in their frantic desire to get out of their share position with the company.
Monetizing the company's assets and announcing your intention to do so, prior to the roll back is essential, if you wish to have any hope in stabilizing the share price. Endless drilling programs haven't helped much in the past to drive the share price up. And neither has the step out and infill drilling that has created some very substantial, but small scale mineable assets.
I do hope that the present drilling program may encounter some significant new discovery that a future roll back in share price may help to fund. But the possible involvement of some royalty company that might choose to upfront some capital to reward present day shareholders might actually serve better to drive the share price immediately higher, if the market considers that the company is serious about such a proposal.
It's up to you and your Board of Directors to carry out such a proposal and to convince the market that you might be willing to share the financial reward in a more immediate way!
Surely such a proposal is worthy of some immediate consideration!
Yours sincerely,
Java