When do we vote again? After the stupid declarations of Blasutti about the "4 or 5 guys" planning to bring 100M in private equity money by mid year (basically auto-sabotaging his own company and putting a "fear cap" on the SP by announcing diluution hell coming soon), I hope more people understand now that this clown has to go....I'm glad to see that in other boards (investorhub) there are more people that agree with me. Since english is not my first language and some of this guys write their ideas better than me, here there are some cut and paste statements from the investorhub board....I hope they start visiting this board to stop the reign of peterburg a.k.a. "one of my insiders friends told me" and all of his pseudo-technical mumbo jumbo....:
have to realize here that this post "merger" management team has very little street cred. VERY little.
excessive salaries and bonuses while shareholders are losing our rear ends,
no PR their accomplishments, lack of PR, getting new and old investors alike excited about buying this stock.
every positive tangible NR,(like the enormity of the LZ prospect),insiders dilute the value with options before the intrinsic value has had a chance to develop.
Our entire merger savings (on the backs of the common shareholders ) through shares (about 8 million),have seemingly been issued as options. We had roughly 70 M shares FD before the RX merger and now have about the same ,yet our common shares are less.
No matter how good the Galena is , if it's potential earnings are diluted away from common shareholders and towards insiders ,it's not looking like a good investment. After all ,it's not like we are getting a dividend,the investment here is purely speculative to the price of silver ,therefore the share price and the net production results are our investment.
Why do I feel like we are being positioned for another merger ?
Share price continues to decline in an environment where cash flow positive companies that are not in need of financing ,to continue operations, are suppose to be safe. That's what we are .
Plenty of junior explorers and developers will be put on the auction block after the best resources are cherry picked from the majors. One defensive solution is to merge. Get bigger quick .I have no information ,suggesting our share price down trend is manipulated, in order to satisfy a
merger,it just seems that way. Recent history can repeat itself. It would be entirely an inside deal, "AGAIN". USGIF is really in no position to be NEEDING another merger with a smaller entity but... What the heck is happening ?
This company's management has been giving us the shaft. I can't believe I thought Sprott would be our price savior.
I hope you're wrong about another merger with a smaller company...especially one that's broke and in debt.
The Gold mine is a nightmare that very possibly is the reason for interest in our company being down, with retail investors.Lets face facts,Drumlummon is a liability,at this point. Maybe that will change but maybe it was orchestrated from day 1 by insiders to effectively devalue the assets of US Silver for some reason only known to the few. Who really knows ?
I've come to realize after several months that our share price would be no less ,had we been a little more negative and a lot more effective in using the retail base to influence the management, into fair business practice. Stop them from rewarding failure and make them take some responsibility for their selfish actions that have cost people here hundreds of thousands in their savings , all for being good shareholders and trusting them to be fair.
All I ask is that the Directors and the Management of this company produce some results that bring the share price to at very least where they suggested it would be post merger3/share. From that point ,if it is believed that silver will be a dominant metal over the next 10 years , when they will issue options ,they will be at 100% above the share price ,showing the market confidence in their products. If they do those simple things,they will build a shareholder base that would never allow this disintegration of share value to happen again. The way to accomplish these things is simple. 1.Retract the options already issued and re-issue at 4/share (a bargain for them with a 5 year term) 2.Make use of this "act of confidence" by advertising the excellent position of the Galena Complex. Do some comparisons.Challenge investors to find better value. 3.Make known that once the LZ area of Galena is fully operational,the company plans to run as lean as possible and store as much silver as possible. Only sell what is necessary for the operation expenses. (another show of confidence ,this time in the product itself) Rest assure we would be knocking on 4 dollars inside of a few months so long as silver spot price stays above 25/oz
Too bad we can't band together like the shareholders did on another stock I have (CMG#). We didn't wait for any shareholders annual meeting. We got over 55% of the shareholders and hired a lawyer last Nov and in Dec (3 mo ago) we fired the CEO,CFO and other management personnel by majority vote which was faxed in and then we enacted bylaws to eliminate any future dilution...etc. You see where I'm going with this true story.
the Drumlummon has been a disaster.The options given at a depressed share price are almost unethical after the Chairman sold some shareholders on the idea of a 3/share price following his heralded good deal merging with RX. The involvement with Sprott and the safety measure having Cormark watch out for our interests in the RX deal,still bothers me . Neither had any business playing the counsel for us. Everything would have been forgotten had Mr.Blasutti put the common shareholders ahead of insiders ,at least until the company got through a tough time with silver. Instead we got a slap in the face. Options in the mining business are destroying the mining business because they have taken the incentive which is what they were designed for and turned it into an insiders only club for achievement and failure. It's a sham and I don't say that USGIF is more guilty than any others ,I simply say they gave up a chance to gain the greatest advertising the company could buy ,for free. "Issue incentive options @ 100% above current share prices"
We are a valid exceptional silver producer.Why in the world would we shareholders have given up a third of our shares for a mine complex worth about 10- 20 million bucs.(if that) It's mind boggling and don't say it's easy to say in hindsight ,I did say this 6 months ago. If Drumlummon had something to offer this merger other than it's bosses,I'd truly like to know what it is.
I agree that the low priced options are killing our stock value. That's as bad as taking out convertible share loans...it's dilution all the same.
Calling an 18,000 oz's of gold /year a productive gold mine is like saying a 300,000 oz gold deposit is worth developing,it's not. Drumlummon has about a 3 year resource. I wouldn't even classify it as reserves. I expected them to get this thing going by now.
I simply want this company to turn around and I see no insider buying,unless they're gifts .I see no reserves at Drumlummon and apparently no permit for large mining. How can they open Belmont without getting a permit or ,Is that done ?
The company has the assets and Blasutti's people knew it when they merged and still know it. My argument is with wasting money on a Boy Scout gold mine and diluting our company with greedy insiders. It's got to stop or a lot of people here will revolt,then there really will be a problem. Right now ,if management ,directors and insiders take seriously and react to some comments by people similar to me ,then this can still be a top company to hold throughout a time of descending value's of many assets ,previously thought of as safe.