AdvertisementI would like to add my take on the latest Core BOD4 advertisement. Tad analyzed it very well, I have a little different slant.
The BOD4. threatened legal action to shut Mr. Piggott up, but I figure as a BOD member he has as much right to speak as the BOD4. Some of the logic the BOD4 is using is pretty ridiculous. Mr. Piggott has as much right to try and shut them up, but I hope he doesn't. The BOD4 has been pretty quiet lately, and with no new Titan shootouts happening, there hasnt been much to write about.
First thing lets look at is dilution, which is the thing underlying all this. In the advertisement, the writer said that big dilution took place since Mr. Piggott took control in 2016. And it has, and no one is happy with that,and everyone wishes there could have been an alternative. But it was determined that there wasn't, but to say it wasn't totally a BOD5 decision, with CEO input, to pursue the dilution route to get Core functioning again, is stupidly ignorant. Mr. Piggott could never have decided on his own as CEO to make such a significant company altering. decision. And probably illegal as well.
Basically the BOD as well as Mr. Piggott as CEO couldn't figure out an alternative.They are all totally and equally responsible.
And then it was said that the dilution was worse than what Titan did (so at least they looked at Titan enough to notice the shareholder wipe out Titan did in 2017). However the actual facts are that Titan has a hundred million dollars on the books as cumulative loses from 2006 until 2017. This would have all been money that shareholders invested in Core ( they also probably stiffed creditors for another $50 m plus or minus). In 2017 when Titan came out of Administration the shareholders agreed to accept one hundred thousand dollars worth of shares in the reawakened company as the best deal they could get. So one hundred million in, one hundred thousand out, one tenth of one percent of the original investment recovered.
Contrast this to the dilution that happened at Core from 2016 to present. Just before Mr. Piggott brought new money to ,then,Dynasty in 2016 ,the share price briefly touched 10 cents. Mr Piggott came in at 15 cents, and the share price has basically been in the twenties since. Basically a tripling in share price under Mr. Piggotts' watch, and the BOD as well , to give credit where credit is due. Whereas at Titan the share price went to one one thousandth.
And in the advertisement, Core BOD4 said there is no alternative. That is a very strange thing to say. Mr.Piggott brought a very much alternative offer from a large established company that made a very beneficial offer to Core. Twenty million upfront twenty million more and a sixty million spend at Dynasty Gold Fields if the drilling proved that a new mine and mill there was feasible. All for only 19.9% of Core and 60 % of the proposed new mine.. And they marshalled their resources to do the confirmation driling that they requested within the 60 days. No risk to Core, if the deal fizzled it wouldn't have affected any other deals they were pursuing. And who knows how many other companies are now knocking on the door, which remains firmly closed. So ,sorry Mr advertisement writer that is a lie, that there are no alternatives. We just don't know how mant there are.
And finally I will give my latest take on this deal. Unrelated to the above. It has always been said that it looked like Core. BOD4 was working on behalf of Titan. I think that it is actually Titan working for Core BOD4. The actions of Core BOD4 would indicate this. I think it is as simple as Mr Reyes presently owns 15% of Core and he wants 30 % without putting in more money. Sedun wants to go from. 3% to 10%' After they get this they will sell Core outright, only fools woukd trust it to Titan. So they sell for as little as a hundred million, Reyes gets $30m for about $9 m spent, Sedun $10 m for $1.5 m. And the remaining $60 m would take care of everyone else. It would take someone better versed in this stuff to speculate how they would accomplish that within the rules.
But it isn't difficult to figure out ways it could be done. And of course it works so well because the small shareholdera would get so little.