Open Letter to Core Gold CEOWell Mark, here we are again at the 11th hour...first with the Plan of Arrangement and now, with Titan's takeover offer. You (and Titan) are nothing if not persistent. I must admit that I started out just writing to you directly, and then it occurred to me that you haven't responded to my last six (6) emails. Clearly there must be a glitch with the email address that I'm using for you, so hopefully, by posting my letter to you here, Sam or whoever you have monitoring this forum will make sure it finds it's way to you.
Let's get right to it. I stumbled across a post from someone else on another site...Investorshub.com, who stated that there had been a signed offer submitted by a Chinese Company as far back as November 25th or 26th. That rumoured offer reportedly was for 0.33 cents a share for the Dynasty Goldfields property alone...a cash component of $10 million dollars and spin off opportunities for both the Copper Duke and Linderos properties. Speaking strictly for myself, I would gladly accept that deal as reported right now. It provides fair value for the rich DGF property...provides a much needed cash infusion...and the spin offs would still provide me the opportunity to participate in the highly prospective, high potential CD and Linderos properties, without the dilution that the Titan deal is proposing.
Now, as a shareholder, I'm sure that you can understand my concern and confusion that this offer...if true...has never been shared with us. More to the point, it seems that Javier Reyes and Gregg Sedun actually locked up the shares under their control to Titan on November 29th and December 3rd respectively, at least a week after the other offer was submitted to the Board for consideration...yet in your December 9th news release, you advised shareholders specifically not to take any action in terms of the Titan offer. I also found it strange and more than a little coincidental that Titan increased their offer to shareholders just days after the terms of the other offer were made known to our Board...until I read the wording in the lock up agreements. It seems that not only are Javier and Gregg precluded from entering into discussions with any other parties or voting in favour of any other offer(s) for Core Gold, the lock up agreement actually states that they are required to reveal the nature of any such competing offers to Titan Minerals. Not quite the level playing field that shareholders were led to believe the Strategic Review Process was going to provide. In hindsight however, I guess it's no different than Titan being told that Zhaojin was offering $4 million cash back in March...and then based on that inside information, matching Zhaojin's offer and acquiring 9+ million shares of CGLD, to give them their initial foothold in the Company.
In reading a number of the posts on this forum, it seems that there's a lot of talk about shareholders banding together and taking legal action against you and the Board for having breached your fiduciary duties to the Company and shareholders. There has also been talk of contacting the media and having them interview you, based on the information that shareholders can provide them with. While both approaches have merit in their own right, neither one are my preference...at least not now. Legal action will take awhile and because you've delayed releasing the news, time is short right now...and in fairness...if you don't respond to shareholders, probably on the advice of your legal representation...why would you ever agree to meet with the media. Besides...you can only embarass someone with a conscience and a true sense of right and wrong. No Mark, my preference would be to see the media interview representatives from the OSC, TSX.V, BCSC and their associated Regulatory bodies. Have them outline the hundreds of complaints that have been lodged over the last six months and their lack of any real action to date...despite Justice Groves stating in his ruling on the fairness hearing that it was the worst example he had seen in 20 years. Have them explain why the Titan offer has not been shut down and sanctions placed on the Core Gold Board...so when the story hits the national media outlets, all of their names will be included. Shame the Exchanges and the Regulators for allowing this to happen...not the Core Board. I suspect then we'll see some action taken.
Under your watch as CEO and, in conjunction with the actions of our Board, Core Gold has become the poster child for everything that is wrong with the Canadian Stock Exhange and Regulatory system. Stand proud...this will become your legacy. djstone