Post by
CSIGroup on Nov 24, 2014 5:33pm
Clifton Star: catastrophic loss of Duparquet is imminent
Clifton Star was just notified that its stop-gap effort to stall the December 1st option deadline has failed. The Quebec Superior Court rejected the Safeguard motion that Clifton Star recently filed.
As stated a month ago,
https://www.stockhouse.com/companies/bullboard/v.cfo/clifton-star-resources-inc?postid=23064482
the company is on the verge of losing 90% (essentially all) of its primary asset, the Duparquet project.
Today, for the first time, the company admitted publically they have tried without success to renegotiate the option agreements. Implied by the news release is that the safeguard motion was the only potential avenue still available to the company, and now that avenue is closed. Present management now has zero possibility of saving their interests in Duparquet by the December 1st option deadline.
Just how bad is this? Very, very bad. The Duparquet project has been the company's only geological resource worth investing in by Clifton Star shareholders over the last few years. Previous joint venture partner Osisko spent around $15.5 million on the project. Much of the results of that investment later became data for the pre-feasibility study that Clifton Star paid a couple million dollars more to achieve. The company has spent many millions of dollars on the project for exploration and resource development work. Salaries and other monthly expenses were paid throughout this time. The Duparquet project was optioned to Clifton Star in 2008. Many years of time and tens of millions of dollars of money spent will go down the drain on December 1st. Investors have only one sensible choice regarding the annual vote for/against the board of directors, the results of which are announced at the annual shareholder meeting taking place on December 17. Throw the bums out, unless they walk away before we can make them run.