Settlement?21 Feb 2022 12:21
Hi All, this is my maiden contribution so please be gentle.
Since January 2020 I have built a 2.2m stake in Arcm at an average price of 4.52p, so despite today's rise, I am underwater, hence my OutofLuck handle.
I have a number of questions/observations to which I welcome honest/practical replies, and I apologise in advance for any ignorance shown in my submission.
1. Given that management previously claimed the court cases were "Spurious," "without merit," and "our case is extremely strong and we have full confidence in the Zambian judiciary system," WHY have they agreed a slam dunk in favour of the plaintiffs, and at a cost in excess of $2.2m US dollars to ARCM shareholders?
One consequence of the settlement is that the full details/facts of the claims will not now be made public, therefore, despite picking up the bill, ARCM shareholders will not learn whether or not we have been the victims of fraudulent claims, or the victims of negliegence by professionals paid to look out for shareholders best interests, thus leaving the possibility of further problems in respect of other assets within ARCM.
2. Who is picking up the legal costs for the actions?
3. As far as I am aware, the legal actions, whilst affecting the company, did not impare upon 'ARCM's assets of interest' to major mining companies, nor our ability to prove up those assets, so other than focussing management attention, how does reaching an out of court settlement advance either?
4. In just over three weeks time, (unless there is ANOTHER extension/revision), we will learn whether or not we are to finally get some hard cash from the sale of Casa. Does anybody know what ARCM's apparent fixation with Golden Square Equity Partners Ltd is all about?
5. The reasons given for the 16/03/2021 surrender of share options at 6.94p, which saw 5 ARCM PDMR's enriched to the tune of £3,474,179, were somewhat demeaned following the 24/03/2021 announcement of a placing at 6.5p, and the subsequent grant of 4m options at 4.5p on 27/10/2021.
6. The Appointment of Rothschild & Co as financial advisors. According to rumour, ARCM have at least one, and possibly two Tier 1 assets in it's portfolio which, as yet, remain undiscovered. It seems to me that the only way ARCM wil be able to capitalise on such assets is NOT by having Rothschilds on board, at a cost yet to be established, but by proving up the asset, and the only way to do that is for ARCM to spend shareholders money on locating and drilling possible sites. Unless the Rothschilds representatives have drills,picks, or shovells, what is their purpose? NO major is going to pay ARCM a premium for the privilege of locating and proving up an asset themselves.