The Achilles' Heel of Copper Fox Metals Inc.Tomorrow is the long-awaited AGM for CUU shareholders and it should reveal all the issues that are currently and fundamentally plaguing this company. Unless management finally announces a concrete decision to put on sale CUU's portion of the joint venture project (25 %) with TECK at Schaft Creek in British Columbia, nothing will move the stock price higher because of a lack of clear direction and purpose for investors. The market needs some decisive short or medium -term strategy for CUU to reward the stock price with more volume and value. All my insider contacts tell me that no such thing will happen, so I am quite disappointed with CUU now but I hope that CEO Elmer Stewart can still surprise us with unexpected news tomorrow. Let us pray then...
Since the cancellation of the accelerated warrants last month, a radical split has taken place within the board of directors. Imagine the humiliation for Elmer when he published a positive press release about additional and upcoming cash flow due to the accelerated warrants only to have it publicly and shamefully cancelled the very next day by the majority shareholder, Mexican billionnaire Ernesto Echavarria! This came as a direct violation of fiducial responsibilities to the shareholders that any legal board of directors of a publicly-traded firm must abide to. The CEO and the lawyer at CUU should not accept this illegal situation but Ernesto is running the show as his private company, not as a public one.
Thursday's AGM should see some very hard and direct questions asked to CUU's management and we need some complete answers. Why is Ernesto not allowing much-needed revenues to flow into CUU's coffers this summer to take the initiative on TECK and also in Arizona? Why does he want to wait, up to another three years maybe, before cashing in the warrants that the market elected to accelerate now by providing the volume and the stock price necessary to trigger them? These crucial issues must be addressed tomorrow, but can we get logical and truthful answers at the AGM? I doubt it. Ernesto has no legal obligation to explain himself since he owns about 58 % of CUU, roughly. This is disappointing.
In the end, the true potential of CUU remains intact with Arizona mines that could well surpass the value of Schaft Creek one day, and a joint venture project with TECK that is still a formidable asset in CUU's portfolio. But the Achilles' heel of the firm is its majority shareholder who is bypassing a unique opportunity to put value into the company now. And shareholders are paying the price for this mistake with a stock that is going nowhere, and maybe another round of dilution in the late Fall as a new private placement shall be needed for the 2021 budget and planning. Instead of having our greatest summer so far, the whole thing is becoming a joke...
Don't expect too much from CUU tomorrow, from what I have heard through the grapevines... we will have to wait again, and again, and again. Very sad.
However, if I am wrong, then we all win!
;o)