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Core Gold DMMIF

Core Gold Inc is a gold mining company based in Canada with all operations in Southern Ecuador. The company primarily explores for gold and silver. Some of its projects includes Zaruma Mine & Portovelo Mill, Dynasty Goldfield and Copper Duke Project.


OTCQX:DMMIF - Post by User

Comment by djstone56on Jan 05, 2020 2:24pm
129 Views
Post# 30519960

RE:RE:Mr. Cough 2

RE:RE:Mr. Cough 2I think that a class action suit by shareholders against the BOD4 (excluding Keith Piggot) is a distinct possibility. More to the point, I think the Board believes that as well. Why else do you think that Sedun transferred his Core shares into his wife's name last year...other than to shelter them? I would think that several law firms would be lined up to take this case on a contingency basis, for 40% or 50% of the proceeds...and I'd be fine with that. It isn't about the money any more...it's already gone. For me, it's about holding the Board accountable for their actions and sending a message to the Regulators that this type of behaviour by a Board of a publicly listed Canadian Company isn't acceptable. The lawyers could start with the Company rebuffing another legitimate suitor in the Fall of 2018, claiming that there was already an exclusivity Agreement in place...presumably with Titan. Follow that up with Luis Zapata, former paid consultant with Core, contacting shareholders in late Novembet, 2018, to try to get the share price up to 0.27-0.28, so a deal that had been brewing with Titan for well over a year could be consummated at 0.55/sh. When a number of shareholders wrote the Company and expressed our concern over this inappropriate/illegal behaviour, Core's lawyer wrote to them/us and threatened us with having access to confidential insider information. When that initial Titan deal fell apart and the exclusivity period ended, why didn't the Board go back to the other interested suitor from the Fall, to determine their level of interest? Isn't that what you'd reasonably expect from a Board that is supposed to be acting in the best interests of the Company and it's shareholders? Fast forward to the March/19 Titan Plan of Arrangement. Keith Piggott brought a far superior potential deal to the Board...and they did everything they could to shut it down...eventually firing him for not voting in favour of a Titan amended offer. The Board fully supported and endorsed the Titan deal, justifying it with a Fairness Opinion from PI Financial...who would only get paid if the deal closed successfully. Fair and objective? Hmmmm...I don't think so. Neither did Justice Groves in the June Fairness hearing...something about the worst case he's seen in his 20 years on the bench. And let's not forget the $15 million debt facility from Javier's bank that Core was supposed to have access to once Elipe SA came out of receivorship. That would have enabled the Company to thrive and become cash flow positive...so instead of making the funds available...the Company was kept cash-starved and financially vulnerable, making them an easy target for Titan's next move. We know what happened with the Vertex debt and the attempt by the Board to reduce the conversion price from 0.30 to 0.18/sh, to assist Titan. Even the Regulators took issue with that and still have not okayed the transaction as of today. The Company had the nerve to put out a Release earlier this Fall, advising shareholders not to take any action with respect to the Titan takeover offer at the same time they turned down a very reasonable (and superior in it's entirety) offer from another interested party. When the IP increased the cash component of their offer to 0.33/sh, Titan miraculously upped their offer to keep pace. How could Titan know the confidential details of the other offer you ask? It turns out that Javier Reyes and Gregg Sedun both signed lockup Agreements with Titan, which not only precluded them from accepting offers from and negotiating with other suitors, they were legally required to advise Titan of the details of any such offers. How can this be construed as being fair or reasonable...or acting in the best interests of the Company and it's minority shareholders? Simple answer...it can't! The Board thinks that by refusing to make a recommendation to shareholders on the Titan offer, it absolves them of any accountability for what is going on. What they fail to recognize is that by them stating that they are all now accepting the Titan offer, that is in effect their implied endorsement/recommendation of the Titan deal. Yup...I think there's more than enough evidence against the Board here to make a pretty solid case against them, if necessary. Lawyers will be salivating over this one...it could prove to be a Company maker for one lucky law firm. djstone
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