Silk Energy Ltd SLKEF

Typical

[victor2009]

ISM came out with a Press Release today purporting to correct misleading statements by URSA regarding Mr. Miller's salary. URSA stated Randy Miller's salary was $884,500 - the clarification by ISM is that the Randy Man only received $382,500 in salary, the rest was the value of stock options he was granted. Its sort of like a murderer saying he was wrongly accused when police stated he had killed his victim with a butcher knife - he actually used a butcher knife and an axe.

The pertinent point is that Randy Miller [and/or his personal company] has been grossly over compensated in relation to results achieved by ISM, and in relation to the time commitment required to carry out the limited operations of the company - now with the paid assistance of a cohort. In addition to this he is given a car allowance, an office allowance and expense reimbursements. He receives rent for the offices space from ISM and a subsidiary company [I would assume he profits on this arrangement], and also is compensated for consulting services by the subsidiary. In 2010, 2009 and 2008 his total compensation from ISM has been $884,500, $685,200 and $4,048,492! respectively. This for guiding a company that has uncovered zero mineral reserves in six years of highly publicized exploration of properties described as having world class potential - a company that has plummeted from a high of $6+ in 2007 to a low of 16 cents yesterday! During this period Mr Miller has been provided with a multimillion dollar loss of office package that grossly exceeds anything provided by similar penny stock companies - in fact it is so extravagant it would be envied by qualified successful executives guiding profitable successful operations. He benefitted by off loading millions of dollars of shares in 2007 within pennies of the all time $6+ high - during a week he was conducting interviews in the public media promoting his company as an attractive investment. He also benefitted by participating in the $2 million sale of a smelter royalty [NSR] to ISM at a price that was beyond logic. The smelter royalty deal "smelt" so badly that the company had to issue contradictory public explanations as to the reasons for the deal.

And these guys have the gall to insult their shareholders with today's Press Release to soothe Randy Miller's hurt feelings concerning his salary! Maybe they should have saved the effort and costs for a Press Release concerning the three plus years overdue Economic Assessment of their "world class" flagship property.

Given the history of bungling by ISM management, it would be too much to expect an accurate statement in today's Press Release. The Release says "Mr. Miller's annual salary for fiscal 2010 was $382,500" .  Required disclosure documents released by ISM state his salary was Nil - the $382,500 was other compensation, a fee paid to his company. That's splitting hairs - but it might be an interesting legal question if the Randy Man tries to cash in on his "Termination" Agreement. The agreement calls for a payment of 6 times his annual salary. My calculation is that this would be exactly what he deserves - 6 times Nil equals Nil.