Cascadero Copper Corp V.CCD

PEAK DRAMA-THE MANAGEMENT PROBLEM

[Time4change]

Peak Drama - The Management Problem 

Not surprisingly, shareholders are upset. They are upset because they believe in the company and its story, but management keeps letting them down. They complain that management never does what it sets out to do, a kind of unfairly broad accusation that includes many upsets that were not in management’s control. 

Still, the complaints are understandable. 

This year, management’s plan was to trench and drill the high sulphidation gold target in the Taca Taca group that they discovered while waiting for the weather to clear at Taron’s Cesium drilling targets. The 2018 plan included a capital raise, which was announced during its presentation in Acapulco and Toronto back in March-April, continued metallurgical work at Taron, additional drilling at Taron, a joint venture opportunity on another separate project in Argentina, and a search for additions to the board of directors. 

In fact, at the outset of the year, the plan was even more ambitious for 2018: McWilliam wanted to drill his 7 best projects, all in 2018. This was put forward. But there was no capital plan that enabled its execution. 

There were other aspects to the plan that were not executed, but basically, due to health issues, personality conflicts with just about everyone, and a marital disagreement, McWilliam dropped the ball on all of it. 

The company has been in limbo since he first adjourned the AGM (annual general meeting) in April to July 19th. His objection was never clarified but from what I was able to nail down McWilliam objected to Judith Harder’s picks for the board. He felt that Judith (also his wife of many years) was picking names that were undermining his attempt to finance the company. Specifically, none of them had any geological or mining related experience. And all of it could have been dealt with more amicably but Judith notes that Bill never was committed to finding new board members, a path that we all agreed on, yet never agreed on, it seems. 

For reasons that aren’t clear, the infighting between management intensified in this period with the board that Judith was putting in place resigning after a hostile meeting with McWilliam in June. In order to keep the company listed, McWilliam put up his picks, names that Judith admits she would have accepted had he put them forth earlier. This week, McWilliam held a surprise board meeting to affirm himself as Chairman. 

Shareholder Analysis of McWilliam’s Performance, 

On Facebook, one investor asked, ‘with Mcwilliam getting his board picks, what’s the problem now?
’ 

An excellent question. Maybe nothing. Let’s hope that all is recovered, McWilliam gets the financing, and the story continues. On the other hand, worries over whether he is the right man for the job are justified. 

After all, the need for a new plan presumes that the old one failed. 

And what more evidence for that do you need than management pointing fingers at each other. 

Here is a short list of some of the concerns we and other shareholders continue to have, 

1. McWilliam’s management style, it is uncommunicative, and disconnected from shareholder interests 

3 www.DollarVigilante.com 

2. McWilliam runs the company like his own private deal, doesn’t feel he has to answer to anyone 3. Has only closed two deals - Regberg and Amarc - in over five years 4. Dropped the ball on this year’s capital plan 5. Put the company in a vulnerable situation (cheap takeover or worse) 

With angry shareholders and a bargain basement stock price, what investor wouldn’t accept a lowball bid from a predator waiting in the shadows right about now? What justification was there for the decision to adjourn the AGM? Will Bill’s personal life be a factor going forward? We have good assets and a good story, but the company needs execution, and my concern as a shareholder is that this is where Bill has been weak.