Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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This fight may not be yet over. Stratex Board now consists of a solicitor Chairman, a part timer CFO and one non executive director. There is no CEO, there is no experienced geological, exploration, mining companies expertise. The shareholders have made their views clear in an amazing vote for AIM and kicked out Englebrecht and the Crusader deal, beating disingenuous manoeuvres employed by the old Stratex Board working with disdain against the wishes of shareholders large and small, vastly experienced eg Teck, Antofagasta and Anglo Gold (bought out strangely and shares reversed voting at last hour) Here we have a solicitor Chairman desperately working against shareholders wishes, as voted and expressed at a General Meeting. What are they covering up ? if they do not establish an experienced Board working in the interests of shareholders it makes one consider that the solicitor Chairman dare not stand down ? That the three of them dare not appoint David Hall as CEO ? Why ? Well the suspicion grows by the hour that they do not want some dreadful misdemeanours uncovering and failures in their duty ? I hope I am proved wrong ? But there has been so much for shareholders to bear already from this lot I fear I may not be so ?
RNS out
Glad to see confirmation that Captain Pugwashbrecht has now gone, but getting monies back from Crusader might prove tricky, especially if they've used the same crack team of lawyers for the loan agreements as they did for the Altintepe deal in Turkey. Personally, I'm not convinced that Thani Stratex is ideal either, as I only ever saw it as the lesser of 2 evils when compared to the Crusader turd, but I'll have to reappraise myself of its pros and cons. I still feel however that there are some decent close to production mines that might bring proper value here that Stratex could acquire with its healthy cash position. The number of miners on AIM who properly self fund are rare, but they're the ones who will ultimately provide shareholder value, as it avoids the need for placing after placing just to keep the lights on. Having a proper income producing mine, in a country where even the Stratex lawyers can't get shafted has to be the way forward, as it'll help fund future projects, exploration and expansion. Fingers crossed this board get it right and see the light soon, so that we start seeing some value here.
I may be mistaken but following the Thani Stratex deal if it goes ahead Stratex share of Thani-Stratex goes up considerably, I think I saw 56% on a report. Our partner Thani is extremely wealthy and is bringing to the table substantial Egyptian projects. Dilution will be vastly less than the Crusader nonsense which was a killer for Stratex shareholders. Englebrecht and Stratex BOD had committed $3-4 Million in paying hugely expensive advisors if Crusader went ahead. Stupid for tiny Stratex talk about burning shareholders interests and funds. Simply suicidal financially. One thing for sure
I have read the TSR presentation and remain unconvinced by it. They were going to do an IPO to raise funds, but now it seems they have changed their minds. 2015 saw a loss of $4.5m and the Group is dependent on the financial support from its controlling shareholders to continue as a going concern. I couldn't find the 2016 accounts. I believe it will take about 8 years before they are ready to start mining. The amount of income they will need until then is not something that Stratex would be able to sustain even to just keep our existing 30% holding. All I can see from this is massive dilution of our holding. I don't know what will happen to Crusader but I believe we will get our money back as it is a secured loan. Crusader will probably need to find an alternate funding source but the suspension would have been for the same reason that Stratex were suspended.
What BOD ? After Bob Foster and Christopher Hall resigned (the driving forces previously behind Stratex) Englebrecht was appointed and drove Stratex to the brink of the Crusader disaster. Both Englebrecht and Crusader have been removed by shareholder requisition. Stratex BOD is left with no CEO a solicitor Chairman, a part time CFO ? and a non exec. No drive, no direction imo. David Hall is needed now without further delay. Appoint him to the Board and get on with creating value for shareholders.
You need to see the bigger picture of what is happening. Crusader asked for their shares to be suspended and the ASX allowed a suspension to Monday so far as I am aware. Their latest update shows them on the verge on insolvency with no let up in their massive cash burn. They have almost nothing left of the second loan of one million ozzie dollars sent to them by Marcus Englebrecht. The circumstance strongly suggest that Stratex will have to make its announcement on Monday, either they will comply with shareholders demands or they will go ignore them and face further shareholder action and very possibly legal action. As for TSR, their intentions are very clear. Have you not read through the extensive presentations they presented to shareholders? They have made themselves available to shareholders for questions. Why have you not been in touch with them to ask if you have concerns?
I was just being pedantic. I haven't looked too much at what he has actually done for the company so can't say if it is good or not that he remains. I think it will take another week or so before we are any clearer on the path the BOD intend to take as they will need to think of a new way to move the company forward. We may also need to wait a bit longer before we know TSR's intentions.
I can't agree with your assessment. Leaving Peter Addison in charge is a disaster for shareholders. Come Monday the board will press on as if nothing has happened.
Board is delaying an announcement for no good reason. Can only mean one thing - they intend to **** with shareholders.
No idea Kulab. I was never enamoured with the Crusader deal and said my best case scenario was we didn't go ahead with either the deal or give the reins to Hall and Foord. So far that's what we have but will wait to see where we go from here. If a merger is proposed it will require another vote but they will need to make it worthwhile. The BOD rejected the idea of the merger initially but if a formal proposal is made then they will need to put this to shareholders.
Well the shareholders voted Crusader is dead. Thani Stratex the alternative. Or are the shareholders going to be ripped off again on a technicality whilst the residue directors pocket yet more of shareholders cash in costs and expenses. Ludicrous.
Technically the shareholders expressed wishes are that he stays as he was not voted out. We do need leadership and direction though. Not sure if Hall and Foord will be invited to the BOD, but they will also need to put together a proposal for the merger if they have not done it already. The only saving grace for Stratex right now is that they have money in the bank and no debt.
The BOD needs to act promptly and carry out the shareholders expressed wishes, The Chairman standing down as well as Englebrecht.
Whilst no longer a Director.. I guess he remains an employee and still CEO until the Board terminate his contract
Whilst no longer a Director.. I guess he remains an employee and still CEO until the Board terminate his contract
Dalafin gold project in West Africa Muratdere copper project in Turkey plus a couple of small Turkish Gold projects and Thani Stratex in Egypt and Djibouti. That’s about it I think
Never thought of that. What would a company pay for 30% of TSR and about �5.5m cash ? We don't have any other assets now do we?
Apparently, Preston Road is a Hong Kong Company. 1) they must be linked to Crusader somehow as part of the deal was that Anglo agreed to vote with the Board and changed their position having originally opposed the deal. The idea of Preston presumably was that if they could defeat the motions then Stratex's money would be available to Crusader. 2) Preston Road probably couldn't lose( depending what they paid for the stock which must come out sooner or later) because even if the deal was defeated their stock would have a value and if the Board can now do something to enhance Stratex's value instead of constantly destroying it Preston would see a profit. However they are now locked in as to unload 10+% of the company will be difficult at present. Stratex may be a sitting duck for a takeover. Cash and no liabilities. A Board with zero mining experience and demonstrably weak I think it is a real case of watch this space!!!
Good news, the Chairman is well passed his sell buy date. Expect further developments. Well done the shareholders of Stratex.
Snowball has started. 1.4 paid
Well it says see the website, but I can't see anything yet. Maybe it will take them a few days to get their act together, but the whole board and management needs to step up now and start earning their money. As to your comment Botrot, if thats true about �20,000, it says it all about the old Captain doesn't it as he never had any skin in the game, but I'm still confused about this Preston Road acquisition of the AngloGold Ashanti stake. One must assume their motives will be revealed at some point soon, as I doubt its an investment move based upon that hopeless Crusader deal we've just avoided.
Hooray, we finally get rid of Captain Pugwashbrecht (so congratulations to my fellow voters on that one), but the Chairman is surely in an untenable position. He must have been party to much of this (and/or leading some of it), so his actions forthwith will surely be very closely scrutinised. If he's a stand up guy, he'll presumably make a clear statement of his intent soon and learn from this whole sordid affair, otherwise one can only hope he'll do the decent thing and quickly fall on his sword, so we can finally bring someone in who can bring some shareholder value whilst we still have some cash here. Theres still a chance of producing a phoenix from the ashes after all.
1345hrs
A dramatic morning! A difference of about 1.5 million votes in the resolutions. The removal of the Chairman was defeated The Removal of Marcus was passed Paul Foord and David Hall could not be elected to the board because the wording of their motion was that conditional on The Chairmen and Marcus being removed they should be elected. BUT as the Chairman was not removed their motion became invalid! Finally The crusader deal was voted down. So we have lost our chief executive but are left with the Board that allowed him to do all the damage it would appear he has done. The amazing thing was the closeness of the vote. If Marcus had just invested �20,000 of his own money he could have swung the vote. but he didn't have a single share --- quite an extraordinary morning. So where does that leave us. We have no chief exec.. we need one and one that will be committed to Stratex and its shareholders. The Thani deal may yet go ahead it does seem to make some sense. but do we need a wholesale board clear out as it took the Shareholders to sense that what was going on was totally wrong?