Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Jackbal, I am up for this and will contribute in terms of percentage shareholding, funding and/or advise, but I cannot lead the effort. My email is my username at hotmail dot com.
We will need bharg I am sure.
Chicken, time = dilution at an already very low mcap. The plan was for a free ride over 4 years more drilling to a PEA which the project would be well defined in terms of resource which should have seen at LEAST a 10x mcap from here. This would then have allowed a capital raise at much higher prices to progress other projects. No, the issue of time is why I want Brad and Louis gone.
I am furious that Brad just accepts that bigger miners have slow "glacial" bureucracy. Well, they would not be so slow if Brad called them and said that they have one month to start P2 or OMI walk away from the deal entirely. I can tell you right now that a decision would come very quickly in that event.
Jackbal, that is interesting thank you. I reckon we could do the same here. Is the 5% rule applicable to AIM?
"will come to a resolution soon, we hope"
"quite comfortable that it is getting nearer to the end than the biginning of how that moves forward"
I wonder what makes him so "comfortable" when his shareholders are the opposite?
*cannot or will not I should say
LW, no need for OMI to force legal action, OMI are 100% owners of the licences at present and should be acting like it. By completing P1 MMA earned an option to enter into P2 within 90 days. Strictly speaking their option has expired but for some bizarre reason OMI mgt are applying stupid amounts of goodwill to the detriment of shareholders.
OMI has massive leverage and are fully entitled to put a deadline on MMA decision, and if they fail to meet the deadline OMI can walk away with 100%. All this would take is one letter setting a date for P2 to start, or some other exit deal made, but our joke mgt cannot apply the correct strategy.
Again you are incorrect to state that your original incorrect analysis means that there is no point in having a contract? No, but having mgt who refuse to execute a clearly defined contract to the detrement of their shareholders is a significant issue, mgt should resign/be removed.
Jackbal "because the sale of the option of $2m gives them 51% control". No, this is incorrect analysis. The option to enter into P2 was secured back in Sept upon completion of P1. The $2m payment is part of the P2 planning, that and the creation of a new JV company. As the 90 timeline was broken significantly, OMI should have only accepted the $2m upon condition that P2 starts within a defined period. We are now 10 MONTHS after P1 completion. We are shareholders have been absolutely shafted and both Brad and Louis should apologise, resign or we vote them out at the earliest.
Does anyone know how shareholders can call for an emergency AGM?
DrR, I have and invited him to call me which he has not done so. Fingers in ears regarding my advice.
DrR, if this is what Brad said it just shows how out of his depth he is as CEO. The RNS should have said "MMA refusing to commit to timeline to begin Phase 2" and the resolution for that problem is simply, OMI give them an ultimatum which if it is not met we walk.
drr "like to hope" really? and what if nothing transpires from such hope - just give them another month, then another month etc?
what the market demands is for him to grow a pair and instruct mma that they must agree a outgoing deal, or start p2 by a reasonable date, the end of june would have been reasonable which is today. we should either have a deal, p2 start, or omi walk away with 100% and look for other partners. "like to hope" for a deal at some unspecificed date in the future is bull****.
I see Brad or Louise is buying again this morning. Must be big news coming "any week now".
Bandit "let’s not get carried away until we establish the facts over the change in majority ownership with the JV. If there is any evidence of wrong doing then that is the time to take action is it not?". The time is now Bandit, the agreement was clearly timeboxed with 90days for transition from P1 to P2. That 90days was up in December and to rub salt into the wounds we get C&M RNS with still no date for P2 to formally start. Time is not on our side as we have no revenue, so this abandonment of the 90day period amounts to dereliction of duty from OMI management. OK fine, maybe it was an optimistic target but here we are 9 months later with no alternative date set.
Why "next few weeks"? OMI are willing to let MMA drag this out. It could be 2024 before Phase 2 formally starts which would mean 2025 at the earliest for any further drilling. Best case at this point is for MMA to bugger off, although when it comes to the crunch Brad has buggered his shareholders instead.
Perhaps change the mission statement to "We aim to set ourselves apart by ignoring critical terms in commercial agreements and allowing our partners to do the same, even when it is of significant detriment to our shareholders".
He is either following orders from Newmont, or they are getting bad legal advice, or they have made mistakes and trying to cover their tracks. OMI are 100% owners of the licences at present, so it is quite within our power to put the foot down and end this limbo. Shocking management to not do so. When do shareholders get to vote for replacement of the Board/CEO?
Jackbal, OMI had no choice but to accept the $2m payment as MMA had completed Phase 1. However, it should NOT have been accepted without a new completion date for the transition to Phase 2.
Where does the "goodwill and everyone acting in good faith" end? I asked this very question to Brad via email but the response showed no desire to set a date for MMA decision. We are 100% owners of the licences at present yet we are acting like MMA already have control. Extremely frustrating, so frustrating in fact that I considering dumping all my stock just so I don't have to think about the horrendous management here any more.
Jackbal, only P1 spend can be counted against P2. So they cannot rack up C&M costs and count them against P2 spend, although our current management seem to allow MMA to have reign and do as they please so I don't think it matters anymore what the contract terms are.
Yela, you are mostly correct, although I am not sure it is clear that any one party is responsible for the transition delay - it must have been agreed by both parties.
If MMA want to stall because of political risk this is exactly what they would do. They keep their option without any timelimits and without triggering the significant commitment to further spends. Even more nefariously it could be a bargaining chip ploy by Agnico to put the screws on OMI for a new deal.
Either way, this limbo is clearly terrible for OMI which beggers belief that our management would agree to it. Shocking.
Impec, prima facie OMI is in a very strong position to force a Phase 2 start or walk away with 100%, unless management have done something daft like agree to an unlimited transition period (I suspect they might have done so and are too embarrased at their idiocy to admit it). Somebody would have had to agree on a set aside of the 90 day term, I am assuming that we set it aside and did not set any other term as if there was a new term set we would have been told.
However, regardless of the strength of contractual position, such a case including lawyers fees could end OMI before a case is settled. So legal action is to be avoided as far as possible of course, but that does not mean one approaches the situation like a neutered poodle. My view, set a timeline for MMA decision or we walk and if MMA take legal action so be it.