Post by
mdjbrown on Jun 20, 2022 11:37am
GSFC
You cant blame GSFC the last 4 years, as they must asking themselves wtf did we get ourselves into. Its no wonder they sought even greater control after the events of 2018.
After months of respectful negotiations in 2017 / 2018 between all parties, on February 27, 2018, GSFC agreed in principle in writing with Karnalytes Chairman to an up to $2 million dollar cash infusion into further research into an anticipated nitrogen project, further funding towards the evaluation of financing options for the Wynyard Project, and the go ahead of a 100000 tpy proof of concept selective solution mine to create instant shareholder value across the board.
It was also agreed that a mega star in the potash world would join the Karnalyte board of directors, which would have created an additional wealth of knowledge in moving the corporation forward.
This was all supposed to get the green light by the end of April 2018, and dirt flying shortly there after.
With 50% of the board of directors already agreeing on an exciting way forward before it ever reached the table for the remaining 3 directors approval on March 8, 2018 Board of Directors meeting, what happened?
Hard to believe at least one of the remaining 3 directors did not vote in favor of creating shareholder value for all of us considering the Chairman and GSFC reps were already in favour, and why were shareholders not made aware of this option leading into the 2018 AGM?
Who was behind the scenes putting the brakes on the potential for a huge creation of shareholder value for all shareholders?
Board of Directors have a fiduciary obligation to the shareholders of any corporation to look out for all shareholders best interests, and it couldnt have been GSFC, as they had already signed a memorandum supporting these initatives and themselves would have directly benefitted on several levels including greater control.
Hard to imagine it was the brand new President kiboshing anything, considering he was only hired 3 weeks prior to GSFCs Memorandum agreeing to Karnalytes terms, and would not have had time to catch up let alone dispute the wishes of either the Chairman or GSFC.
Yet, on May 25, 2018 a very telling email was sent to the board with a very different plan of action for shareholders, that would later result in expensive lawsuits, an unneccessary Rights Offering, director resignations, GSFC rep being relocated, Krn CEO terminations, and after all that carnage, 4 years later we are still left hoping something positive can be salvaged from the remains of a once very promising multi pronged project.
Would be great to see the current directors push for greater transperency of the 2018 events, as its all going to come out eventually anyways, so someone involved back then needs to stand accountable and explain exactly what happened, and why to the shareholders of this corporation who have been shaken to their investment core based on decisions made by those elected to protect all shareholders best interests.
Comment by
bigkagan on Jun 20, 2022 12:05pm
With the MgCl2 today being around 4 times more expensive than in 2016, the magnesium part of the mine becomes much more attractive. It's also a strategic metal since 90% of it is being produced in China and the US has a plan of having its own production of rare metals - so don't dismiss a mine just for the sake of Mg with potash as a by-product, and to heck with GSFC
Comment by
bigkagan on Jun 20, 2022 12:08pm
If GSFC becomes an obstacle to a mine, the money they paid can always be returned to them