Dear Independent Directors,
Re: Corporate Management of CMM
I am writing to you in your capacity as an Independent Director of CMM. As a successful corporate executive in your own right, I am sure you are familiar with the fiduciary obligations of independent corporate directors. I hope you will exercise those obligations appropriately at CMM's Annual Meeting later this week.
I am a retired Canadian, and unfortunately I can't afford to attend the AGM. My wife and I have significant shareholdings in CMM. We invested in CMM because of the original corporate vision articulated by CEO Ms Kent, and the fact that a successful merchant banking firm, Endevour Mining Capital, provided a significant part of the start-up capital. Endevour also had board representation at that time.
Unfortunately, Endevour is long gone, and Ms Kent's vision turned into one disaster after another. She seemd to have lost all her credibility with unfulfilled promises, and poor judgements (as indicated by her ill-advised adventures in Peru, such as Shahiundo, Rosario De Belen, & Algamarca, plus the foolish attempt to take over Sulliden). These blunders cost the corporate treasury several million dollars; funds which should have been spent on the Lamaque project. Now the Company is probably teetering on the edge of bankruptcy in a gold bull market.
These are the reasons why we have voted to withhold our support from curent Management. If we were the only shareholders holding these views I'd grin and bear it. But I am sure we are notthe only ones. That is why I firmly believe that you and your fellow directors need to select a new CEO. This is in the interest of not only the shareholders but also the Company's survival. The Company can no longer afford Ms Kent's ongoing mistakes and stay in business.
Thank you for your consideration of this request.
Sincerely,
3 comments:
bigjohn37, thank-you for taking the time and effort to compose another great letter to the Board.
There's less than 2 hours left to cast votes to Withhold PK, but we have up until the AGM to send emails to the Board.
We can't tell from the tally how many votes we have, but based on the minimums, there are at least 6 million votes recorded and perhaps as much as 10 million or more.
Those with more than 500,000 shares may have considerable more shares than 500k. This is a significant protest vote.
Thanks Carib.
Thinking beyond the AGM, and in case nothing will change, I have written to Michael Del Buono of Scion. Essentially asking him whether they would consider organizing an extraordinary shareholders meeting in the coming weeks. I also informed him of the existence of this Blog (in case he did not know about it), and that it's a reflection of a rebellion by retail shareholders. Suggesting too that Scion would not be alone.
From an internet search, I took note of the fact that Scion went to court in 2006 to protect their investment in Bolivar Gold Corp. in conjunction of a takeover of that company. I regard that as a good sign about Scion.
I will let the Blog know what if any response I'll get from Scion.
BigJohn,
I had a room mate in high school whose nickname was Big John. He was a few years older than me. He kicked the crap out of bully who sucker punched me. BigJohn didn't talk much, maybe 20 words in two years, but he carried a big stick.
Excellent letter. Michel (not Michael) at Scion is aware that this blog exists. Many retail shareholders invested when Scion did. Scion invested for Lamaque, not Peru. We have come full circle.
How many shareholders are going to attend the AGM? Is anyone going?
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