Clifton Star Res Inc CFMSF

EPIC FAIL: Clifton Star on verge of losing 90% of main asset

[CSIGroup]

EPIC FAIL: Clifton Star on the verge of losing 90% of its primary asset

In a previous article it was stated that Clifton Star Resources (V.CFO) is heading toward a December deadline by which it must renegotiate the payment of $10 million to option holders of the properties that make up its Duparque, Quebec project. This deadline of December 1, 2014 relentlessly approaches and there is neither evidence of progress nor communication with shareholders. The last communication of substance was seven months ago. Is that the best they could do?

Should this deadline - now just barely over 30 days away - pass without a new or revised agreement, Clifton Star Resources will lose control over 90% of its core assets at Duparque. Present management inherited the current option agreement, knew what it was getting into, previously negotiated an extension, and had a year to renegotiate the new December deadline. They should not have waited until the stock price was making all-time lows (last week, 12 cents, today, 10 cents). Company president/CEO Michel Bouchard has risked everything. To wait so long to negotiate something of this importance is nothing short of inept. His complacency has become negligence, and only the shareholders are paying the price.

Shareholders need to understand that it's *their* money being siphoned off monthly, and *their* assets at risk here. Management has little to lose with their large director fees, big CEO salary, and substantial office and investor relations expenses. When the company bank account dwindles to the point that it won't support the monthly cash drain, a highly dilutive financing will be the likely course of action. Yes, current management owns some stock but the stock they actually purchased in the open market is just 1 or 2 percent of the shares outstanding.

The stock price already reflects (or is starting to reflect) the prospective 90% loss of the project. If a financing were done it could quite possibly be at 10 cents a share...or less. This would be a disaster for a share price that has already dropped 95% in two years. What is the stock worth if the company loses control over its main asset?

It would be really unfortunate if this "accident waiting to happen" in fact does happen, since it didn't have to happen. If it does happen, they should all immediately resign their positions due to their dereliction of duty. If they don't walk away, the shareholders should vote them out at the upcoming December 17 shareholder meeting.