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Claude Res Inc CLGRF

"Claude Resources Inc is engaged in the acquisition, exploration, and development of gold and other precious metal properties. Its projects include Seabee Property and various exploration properties located at Laonil Lake. It also owns Amisk Gold Property."


GREY:CLGRF - Post by User

Post by Bottleson Oct 10, 2013 8:39pm
355 Views
Post# 21808835

Checking in.....

Checking in.....
"Based on the general tone of the resource sector and the Company's ongoing pursuit to rationalize its corporate expenditures, the Company has decided to delist its Shares from the NYSE MKT."
 
What a bunch of BS!
 
I actually bought 50K shares yesterday and I sold that 50K today faster than you can say "I hope Neil voluntarily resigns from CGR". A VERY short sighted move and a VERY troubling one at that.
 
How much money will CGR/CRJ save on this action? My best guess is about 1/3 of Neil's salary. This then begs to question "Why such a drastic action?". Think about that. Is CGR/CRJ that deep in trouble financially?
 
The last PP CRJ/CGR undertook was for $50M (or thereabouts). Neil spent that money like a drunken sailor. Although the bulk of the same was well invested back into Seabee, $12M or so of that PP would have been better allocated if set aside to take out the debentures instead of new debt. Today, that debt and a fall in gold prices has the entire Seabee operation at risk. Total INCOMPETENCE. Going forward, and should the current PM environment continue and or even worsen, the only thing that will save CGR/CRJ is the SHAREHOLDER.
 
Neil might pat himself on the back as to having survived tougher times gold price wise, but how did he do it? He did it by one PP after another and DELISTMENT is how he pays back those very same shareholders.
 
EQUITY has been CRJ/CGR's saving grace since day one. Instead of voluntarily delisting the shares from AMEX, costs can be lowered by undertaking a share consolidation (ie: AMEX schedule of listing dues and fees). Yeah, something like a 4 to 1 consolidation sucks for the shareholder, but so does delistment.  With a share consolidation and continued listing on the AMEX, however, CRJ/CGR is at least in a position to bail itself out "once again" via the SHAREHOLDER and those things called a "PRIVATE PLACEMENT".
 
To close, "management incompetence" is the Company's worst enemy. NOT the price of gold. 
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