Options for CEC?
I wonder if anyone on the bullboard can cast light on the options being contemplated for CEC.
In terms of its finances, its management, its properties, the company is in trouble. It has no cash, auditors state that there is serious doubt that the company can continue as a going concern. In June both Defer and Tapics "resigned" - though neither of them should be scapegoated for the mess the company is in. That responsibility lies with the board - O'Rourke. And Tapics - he's still a director.
The Raven environmental assessment application has been rejected, and its doubtful that Compliance Coal Corp., as the operating entity for the Comox Joint Venture's Raven project, has the money to complete the application. Will AMEC complete it as part of its deliverable? Will the joint venture partners pony up more cash? Itochu already refused to do that at the end of 2011.
So what are the options, for Raven, and for CEC.
For Raven, really the only option is for CEC to part with some of its equity in the CJV, either to the joint venture partners or a new partner. Is there any interest in this? What about these new companies staking claims in the area? Golden River - with its connections to Canadian Dehua and Chinese money? Feisa Resources - also with connections to Chinese money?
For CEC, which has nothing to exchange, other than its equity in Raven and the freehold coal. It's possible that selling of some or all of its interest in Raven would produce some badly needed cash for CEC, but isn't it more likely that any Raven deal would only result in cash to keep the Raven project moving along, and CEC will have to fend for itself.
I've suggested before that CEC has way too many shares outstanding for a company with nothing but dept and no properties of any interest to anyone. So, a rollback - 1 for 4? 1 for 8? - and a new issue to raise some capital for another venture.
The stock hasn't been above 12 cents in a year now. It's not possible to know what's going on there. There has been quite a bit of trading in the past year, and some recent purchases by O'Rourke, but I think tha tmost of that trading has just been shares washing back and forth. That is, nobody is making a serious effort to make an opportunity of these low prices to buy up a chunk of the company. What's to buy, for goodness sake? Debt, lousy management, no properties.
What a deadbeat this company is.