Tuesday, March 15, 2011

Feedback, sorta

I contacted Pk's office today, and asked whether she might have some useful insight as we move forward. I received a call back with a suggestion: Richard Meschke was contacted, and has agreed to forward our concerns directly to the BoD. His email appears below.
I cannot say whether this will do our cause any good - and am altogether open to whatever consensus we arrive at. My basic position is that we are being offered an indefinable pittance for an asset worth at least seven times anything WTG shows on its physical asset sheet. If we're expected to play, then we ought to be paid. Period.
That being said, I hope that we can develop a meaningful and useful dialogue with the BoD. The first step is to at least make an attempt to negotiate - even the Somali pirates negotiate, and certainly we're dealing with more sophisticated people here. Its no use calling names-its the surest way to lose a debate.
I do have some time to devote to this effort. I will participate in anything except a lynching (yeah, I know...sigh). I am opposed to this deal as it stands. Carib, Blizzy, Glorieux, or whoever ends up on point, you may avail yourselves of my talents in writing and editing if desired.

Richard's email: rmeschke@centurymining.com

17 comments:

$5 Footlong said...

One month at a time ladies

bigjohn37 said...

Thanks for your offer , Chillby. While we get organized, you might inform the BoD (via Richard Meschke) that we are unhappy with the "fairness" evaluation. Plus we are disappointed that Mr Sheridan & Mr Campoy did not stick up for us, minority shareholders. We do not think that MR Major is running CMM in the interests of all shareholders, so they should ask for his resignation immediately.
Thanks.

chillby said...

I will draft a letter tonight and hold it for comment before sending it on. One of the moderators of this blog might think about setting up an email box for this sort of thing - we ought to be able to correspond outside of the public domain, and I hesitate to post personal contact information up here, for reasons which I trust are obvious.

real_economics said...

In the past there is no doubt I would have agreed a dialogue with the BOD would have been the best course of action.

However, the reality is we are dealing with a top guy now (Major) who basically introduced himself a couple months ago and said ramp up was going well in 2011 and contingency planning was being done. We were supposedly close to 1500 TPD and 2000 TPD shortly thereafter.

Then with remarkable timing, "coincidentally" several weeks AFTER the actual event and just a few days prior to this "merger" offer we get this overtly negative "let's shoot ourselves in the foot to show we need to be saved" press release claiming 9 days of a crusher being non-operative has changed everything and CMM has gone from a company successfully ramping up to one that financially illiquid and a going concern.

This tactic truly disgusts me as clearly they felt they needed to create a "problem" in order for WTG to be seen as a viable "solution."

The next major event is this conference call where Major ducks every meaningful question and Cowley tries to do his part by explaining how Finiskiy is such a great and powerful wizard that his .28 cent shares are REALLY worth 4.50.

The most optimistic news right now is that management, while unable to ramp up Lamaque, is clearly even more unsuccessful at trying to trick it's retail shareholders.

I supported CMM Management for months and always gave them the benefit of the doubt, even through the cease trade order.

At this point, I have to say the most useful dialogue would be to somehow engage any prospective white knight that would make a competing offer to take the Lamaque and Peru assets and clean house on executive management.

I think many would take very little from a competent 3rd party that could do this before taking even a 1:1 on WTG paper that maintains the current executive team.

RE

Anonymous said...

What you need to push for is the valuation of both companies that is usually completed when it is a t/o situation. Only THEN can WTG demonstrate its offer is "fair". But without a fairness evaluation we are expected to believe that WTG's market cap of $500 Million is the true value of 4 exploration properties and a tinker toy mine.

Personally, if one is going to fight they ought to get their ducks in order and then take the best grip that they can FIRST. Otherwise one will just be feeding into your opponents hands by revealing your strategy up front.

These guys aren't going to negotiate with a bunch of shareholders until you demonstate to them you have an upper hand that blocks what they want. Opening "dialouge" might make you feel good but it will do nothing.

Get organized, collect pledges from a 10% share block and THEN go force Finsky's hand. Otherwise they'll eat your lunch and run the back door on you.

jmho.

real_economics said...

I agree. I am going to contact some people in the industry that might be interested in the Lamaque / Peru assets. I encourage others to do the same. There are mid-tier and senior mining companies that are swimming with cash they don't know what to do with.

If anyone knows of a good lawyer with experience with class action lawsuits that would be very useful as well.

RE

Anonymous said...

So you got in touch with Peggy?

Did she mention whether she still held her shares and what she's going to do with them.

chillby said...

Her personal secretary listened to what I had to say, and called me back later today with the suggestion about Meschke. She said that PK had contacted RM about this. I will infer that she still has a stake, but it is only an inference.

I agree with you, RE. I do not expect anything but more snow from the company management. I am of the opinion that there is plenty of useful information to be gathered from a dialogue. If we go to press and court, then we will benefit from having made the effort.
The other thing that must happen is that we must be able to name their game. We must lay it out logically and clearly for the shareholders to see. We will not prevail without the support of more than 35% of the shares in this company.
The first thing we need is a secure venue and someone to organize the effort. Who is willing to step into a chair's role? We can certainly choose our chief representative here. After that, we need to be able to talk outside of the public domain.

Anonymous said...

Can we not move over to semi-private bd. we set up on IV .. calling it what-ever we wish with whoever we wish as moderator.
..for superior navigation
..for superior PM messaging
..no need for a mobile phone
which someone like myself can not
get short of MOVING at great expense

Please NO stockhouse Everything I do internet-related has to be on dial-up. Peter

Anonymous said...

Much of this correspondence should not be done in public!!

Stockhouse is archaic. allow more people to help.

Final desparate act .. this is why groups get splintered

you may be keeping out some useful talent

And if you insist you are really
doing what the insiders at cmm are doing. Best of luck whatever your chose

Peter

Anonymous said...

IV is the Cadillac ... SH is a trike

By not including more people (shares)

you may be letting frustration enter.

In the last week I sold ~1/4 out of

about 1/2 mm ..Japan issues and balancing risks. Shares sold at ~ .80 vs keeping to receive ~.5 or less. Son mostly out of market since '08 has a chunk. Very disappointed with our call-in effort today

Peter

Wingfong said...

RE, judging from the sequence of events n all the timings, I have a feeling it is not that they are unable to ramp up production. I am inclined to thk it is part of DM's plan to subdue things to make his case look valid-- that is CMM is not in good shape n we need help n we have found this WTG outfit to do us good

Anonymous said...

If anyone knows of a good lawyer with experience with class action lawsuits that would be very useful as well.

RE

-------------

Try

Reply Attention of:
Grant Weaver


Direct Phone:
604.641.4827


E-mail:
gkw@bht.com

He handled the HRG matter with Chris Charlwood.

Anonymous said...

would certainly be nice to see if we can get someone that works in the mine to give out some information

Wingfong said...

Jmho.. agree with your approach. However, is it not a 5% of century outstanding shares exercising dissident rights will do the job n no need to be 10%?

Anonymous said...

I have been following your blog for some time and fully agree with your assessments. My 300,000 shares vote "No" to the merger as well. Count me in for any dissident action/vote. I think you will find a number of people like myself who follow what is said but do not have much to contribute to any blog.
AJCalgary

Anonymous said...

my 400 thousand shares vote no. count me in on any dissident shareholders activity. keep us posted. ill be watching on this site
Jmontreal