RE: Depressing22 Jun 2020 15:57
Here is JP's response to my email regarding my perceived shortcomings of the BOD and requesting a Q&A to clarify our many questions given the AGM cannot be attended by shareholders, should this be of any interest to you.
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Thank you for your email.
I have been made aware of many of the comments on the Boards which are, as usual, a mixture of facts, conjecture, toxicity and outright lies.
For the record, Alan Broome attended, as chair of the Safety Committee, an inspection of the Cobre operation after which he met, once, with Brenda Smith. At the time, CV Investments were late in paying their December 2018 instalment, due in October. Alan was on his way to London for planned meetings and took the time to meet Brenda Smith at their offices. His role was merely to assess the likelihood of payment, not one of undertaking a due diligence. Ms Smith was quite convincing as she has been to a number of people.
With regard to the letter of intent, this was initially over text but, this was subsequently confirmed in an email. Either way a documented agreement had been made and any reporting to the market was accurate.
As to due diligence, the agreement was undertaken in the first half of 2017. Given that all our contracts at Cobre are pay as you go, this was an unusual contract as they wished to ensure certain access to the magnetite. I pushed them both for a cash deposit of US $250,000 and a minimum take of 4,000 tons per month. As a result of this contract the Company has made over US $2m after tax. The non-payment arose after this and so either way, this is not a contract we would have wanted to turn down.
Due to Covid-19, the AGM will not have shareholders but it is intended that shareholders will be given the opportunity to submit questions and the top five or so questions would be answered, if possible.
I strongly refute your allegation that the claim relating to the contract is an expensive PR exercise. We have kept the legal cost low as we are unaware of what assets exist in CV Investments and are heartened by the fact that the SEC has frozen the company assets as we believe that this indicates that some exist. However, at this point, I do not know how much there is, how long it will take to receive it nor what percentage of available assets we will be entitled to.
I, and the Board, continue to believe in the value of the Company both as an income producer and the strong value in both the Leigh Creek and Redmoor projects. This support has been demonstrated both by the sizable investment the Board has in the company and the continued purchasing of shares.
Regards
John Peters
Managing Director
Strategic Minerals plc
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