RE:RE:Core Gold Q3 Financials and MD&A now posted on SEDAR1kgcoffee,
Found this sneaky phrase in the MD&A, what could it mean??
However, while Core Gold is continuing to investigate a broad range of options, there can be no assurance that the Strategic Review will result in any alternative transaction to the Titan Offer.
Does any one have a gun to the Core Gold shareholders heads telling us we have to ever tender our shares to Titan Minerals offer .... even if no other binding offer(s) result from the strategic review process ?? What if we all stuck together and said no, just like we did back
when we successfully defeated the plan of arrangement, and I believe we have a significantly higher percentage bakcing us now.
We almost defeated the plan of arrangement, missed by less than 3% ..... even though
we had to fight against 4 board members and their family, friends, and busness associates
with their +50 million shares. I highly doubt these individuals will be foolish enough to
tender to Titan's confetti paper offer this time around. That offer works out to 788 million
shares if they did, with virtually no cash to do the US$3 million upgrade to the Portovelo Processing Plant, do any exploration, or to pay down any of the remaining legacy debts ..... Titan would be looking at close to 1 Billion shares outstanding by the time they raised
enough cash to pay for all the work.
I, for one, will never tender my shares to Titan, and I am fairly certain that tens of millions
of other shares, from many large shareholders, will NEVER tender either. EVER. No one
wants pieces of confetti paper, basically worthless shares of Titan MInerals. Cripes, they
can't even follow proper proceedures in Peru in getting their permits. Look at the statement about the operating personel at their Vista MIll ... basically the same staff that ran the Tulin operations ... need I say anymore more there ? $45 million of potential envirnomental
liabilities from improperly disposed of tailings .... oh but Titan says they have two legal
opinions that they are not on the hook for any of those environmental liabilities .... and
exactly what value did Core Gold's legal counsel's "opinion" have when it came to the B.C Supreme Court ruling ?
Bumpkis, nada, zilch ....
Had the Core Gold BOD4 and CFO rolled up their sleaves and done the hard work of
firming up an agreeement with the offer of partnership that Keith Piggott negotiated
with Zhaojin Mining back in March, we may not have been in the current situation we
are today.
Still trying to understand how anyone of the BOD4 could turn down $100 million for a 20% equity stake in our company and a 60% share of the Dynasty Goldfields Project, unless it
was pure laziness of not wanthing to do the difficult work of negotiating with Zhaojin Mining
to pin them down on a binding agreement
Look at out 3rd qtr results. We made a small profit, slightly better than what I expected when I posted my calcuations back in mid-October. Debt levels continue to come down, slow but sure.
As far as I'm concenred, our directors are now dealing from a position of financial stability, not desperation, as the BOD4 and CFO tried to portray during the plan of arrangement's fairness hearing in June.
Even though many shareholders harbour a good deal of mistrust with the BOD4 and CFO,
we now have to trust that they will do the right thing this time around. I'm willing to gIve them
a chance to redeem themsleves. They've known about our financial position basically on a weekly basis so they may be "sticking to their guns" and not settling for less than is feasibly possible.
At the AGM on October 8, our CFO Sam Wong and CEO Mark Bailey both stated that Kuscan Mining was providing the company with weekly updates on production and costs. This weekly updated information has most likely allowed our full board of directors to "bargain / neogtiate " from a position of relative stability / strength with who ever has been deemed as the best offer(s) resulting from the strategic review process.
Why give away the farm when we're actually profitable ?
While it would be really nice to have a major company come in as a partner, or take
us over completely, this company is slowly improving quarter over quarter. We "only"
have about $15 million in debt now.
What is our processing plant worth ? The fuill value has been written down through
depreciation and currently has ZERO carrying value. That asset would cost at least
U$35 million to replace .... more than our current market cap .....and our 2.1 million
ounces of gold at Dyansty Goldfields has a carrying value of just $14 million ... or $7
an ounce ..... some of which are being mined from open pit operations at an average
grade of 3 gpt . The Zaruma underground with 2.5 million ounces has been completely
written off, as well as the +7 km of underground development . ZERO carrying value.
Jerusalem Project, while still not back under company control, was still being negotiated
with the Gov't of Ecuador ..... 1.2 million ounces there, almost completely surrounded by
one of Ross Beaty's companies. .....
Oh yeah ...... Copper Duke .... Linderos .....
Why should we ever exchange our shares to nothing more than a two-bit shell company from Australia, a company who has repeatedly misrepresented themselves, mis-stating their assets in public presentations, including an "asset" of over $10 million as "goodwill", misrepresenting a world reknowned mining personality as the CEO of their company while Titan was in the midst of a financing .... some might call that fraud ...... not to mention the potential $45 million in environmental clean-up costs in and around the Tulin Plant in Peru.
We don't want any stinking Titan paper.
Actually ... would it be so bad if we only took a suitor in with say a 15 - 20% equity stake for $10 or $15 million ...... even at $0.25 we'd only be looking at dilution of 40 - 60 million shares leaving us with 205 - 225 million shares .... and full participation in the upside potential as opposed to losing our company to 788 million shares in Australia plus another 200 - 300 million dilution to raise the money
Hmmmmm ..... Hey Javier Reyes ....... whatever happened to the US $15 million debt facility with the 12% interest rate ..... that only saw total dilution of 15 million warrants exercisable at $0.50 if the debt facility was fully drawn down. That would be a helluva lot better than tendering yours, and all of your family's, and business associates' shares for participation in a garbage shell company from Australia with that would have a BILLION shares ......
Just saying ......
........ we're watching
DO NOT TENDER TO THE TITAN MINERALS OFFER
GLTA