RE: Questions for the company No, cliffvb, I have not heard from IR. I also contacted him on Monday with questions about the "legal disagreement" with Tulum, but have not received a response.
After waiting, I moved ahead and contacted BCSC and the TMX fraud division yesterday. Here is a copy of my letter:
I am a concerned shareholder of Monument Mining Limited (hereafter, the "Company"), and it has come to my attention that the Company's management failed to timely disclose to shareholders what should be construed as "material information."
In its most recent press release, dated February 22, 2013 and aptly entitled "Monument Settles Legal Disagreement," the Company announced it had "settled an outstanding legal disagreement with Tulum Corporation ('Tulum') and its sole-shareholder, Mr. Francois Marland." However, it is clear that shareholders had not previously been apprised whatsoever of any "legal disagreement" with Tulum.
This "legal disagreement" appears to be "material" in nature because it required the Company to pay $12 million dollars in order to settle a dispute over ownership in one of the Company's key projects. The said disagreement is also likely responsible for the Company's withdrawal of a private placement to Tulum, which was originally announced on October 17 and subsequently withdrawn several weeks later.
The Company also may have been deceptive about its reasons for withdrawing the private placement to Tulum. In a press release dated January 17, 2013, the Company listed as its reasons, "less dilution," "broader participation" and "potential new investors," however, the press release made no mention of any dispute with Tulum of any kind.
The aforesaid facts suggest the Company withdrew its private placement to Tulum because of the "legal disagreement," which was not disclosed to shareholders until a settlement had been reached, resulting in the Company paying an unexpected yet substantial $12 million dollar payment. With less than $69 million in annual revenues and cash holdings of just $25 million, this settlement amount significantly changes the fundamentals of the Company.
I, as a shareholder, should have been apprised of such "legal disagreement" and its financial implications in order to make a decision about my stake in the Company. I am strongly urging your office to launch a thorough investigation to determine if the Company indeed erred by not properly disclosing material information to its shareholders.
Thank you for your attention to this important matter, and I look forward to your response.
My hope in sending this letter is to make management and the BOD more transparent and considerate of shareholders. I also hope others will contact the securities regulatory authorities (feel free to use all or part of the above in your letter).