more from Manila Standard Newspaper, June 11 Not Good news, stock price so low, many people must have known of these issues since the March 26 letter
or before.
Did receipt of the the March 26 letter not require an immediate press release form SAU
Call the TSX to review, somthing wrong here
Maybe Nadecor will try to buy shares at this low price
Call IR and demand to speak to someone 509 343 3193
St. Augustine Gold and Copper Ltd., a mining company with offices in British Virgin Islands and Cayman Islands, may lose its contract with Nationwide Development Corp. over the Kingking gold and copper project in Compostela Valley province.
Documents obtained from sources showed that Nadecor formally advised St. Augustine of the proposed cancellation.
The sources said the Nadecor board would present the cancellation for ratification of stockholders in a meeting slated June 13. The proposed cancellation was contained in a notice to stockholders signed and sent by Nadecor’s corporate secretary.
Nadecor, according to sources, was taking the action because of St. Augustine’s refusal to honor “reciprocal obligations,” including “willful deviations from money flow mechanism,” abandonment of the mine site and several cases of gross misrepresentation.
The charges were contained in a March 26 letter delivered to St. Augustine president Andrew Russell and signed by Jose Ricafort, Nadecor’s majority shareholder, and Nadecor president Jose de Jesus, former Transportation secretary.
Nadecor alleged serious deviations from the “money flow mechanism,” in which funds for the project were to be deposited to a special account from which all expenses are to be paid out. Nadecor said St. Augustine, instead, paid contractors and suppliers without informing the local company.
St. Augustine said in a statement Nadecor’s plan was “not reflective of the view of a majority of Nadecor’s shareholders.”
“It is unfortunate that St. Augustine and the expedited development of the project is being dragged into what we understand is an internal Nadecor dispute,” Russel said in a statement.
Nadecor claimed that St. Augustine abandoned the project without its consent.
Nadecor and St. Augustine signed an agreement on April 27, 2010 to develop the Kingking Copper-Gold Project in Pantukan, Compostela Valley.
St. Augustine committed to fund the project for $97.6 million and agreed to a “money flow mechanism,” which assured that investments were deposited to a special Russel noted “the potential investment by the family of Sen. Manuel Villar Jr. in the project and welcomed the vote of confidence this indicates in the project.”
(Published in the Manila Standard Today newspaper on /2012/June/11)