Thursday, March 31, 2011

What if WTG CTO - pursue?

The British Columbia Security Commission (BCSC) is very active in catching the kind of problems WTG has with their NI43-101 reports (and lack there of).

A quick note to the BCSC alerting them of the inclusive/exclusive clarity problem should be enough to get them to send a question to WTG for clarification. Not a big deal but important enough to have an amended NI43-101 report issued. Since the presentation is potentially confusing and since there is take over in the works, maybe it is a big deal.

The second problem that you could alert the BCSC about is the business of the Pridneprov property and the lack of a NI43-101 compliant disclosure. Read what I've posted at the blog. I've though about it and even though the WTG statement has a caution, there is enough bait in their statement that IMO should trigger the BCSC requesting a supporting NI43-101 compliant disclosure. For example, where is the property located? What is the ownership? What is the geology? These are all things that must be answered in a NI43-101 compliant technical report. The fact that there aren't any resources doesn't matter. The BCSC may or may not be interested but if you file a question with them they will give it consideration. Without more information it is hard to know if Pridneprov is anything more than a big moose pasture.

Since WTG trades on the TSX and since CMM has a strong connection to BC I expect the BCSC wouldn't have problems taking the complaint. Alternatively you could file with the OSC (Ontario Security Commission). Send it to one and copy the other is probably the best strategy.

The issue with the Pridneprov property could be enough to trigger a cease trading order. IMO WTG should definitely not be trading right now. But that is just my opinion. The BCSC and OSC aren't necessarily easy to predict and may see things differently. However if you do complain they will consider the merit of your complaint.

From goldminerpulse

8 comments:

bigjohn37 said...

Hi Doc. You raise a valid point.
I've already written to the TSX. But alerting the BCSC is also a good idea. Neither CMM nor WTG have their "corporate houses in order" (e.g. non-compliance with the required percentage of Canadian directors; incomplete BoD for CMM; incomplete disclosures; all kinds of conflicts of interest; Finskiy not fulfilling his obligations under a shareholder agreement; etc), yet they want us to vote on a dubious merger proposal (based on shoddy valuation of WTG). These guys definitely take us for fools! A CTO for WTG would definitely be in order.

ATInsider said...

Great read Doc.
Here's my original quote to further extend bigjohn37's reply.

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It's clear CMM is worth a lot more than WTG and therefore giving away our CMM shares for 0.40 WTG shares is an insult to our intelligence IMHO.

chump said...

I telephoned each of the OSC and BCSC and spoke to an intake person. Each asked that I send in an email, which I have done -

I would encourage each of you do the same - Canada has a bad reputation for scams and junior mining - the more that write in asking that they take a look - the better off we will all be (hopefully)

Sent Yuri said...

I truly applaud all the effrts here to get to the bottom of this crazy story. The posters' dedication is remarkable. I just hope, in the end, we shareholders get, at the very least, our 52 week high of 87 cents.

Wingfong said...

Hi Chump
Appretiate your work in following up with BCSC n OSC. I will do the same as per your suggestion n reasons. Believe more in our midst will follow tro likewise. It is excellent U had started this front. Hope you can put up their email addresses for easy reference to members.
Hi Sent Yuri
Think U are being conservative in asking for $0.87. To tell U the truth, knowing what we know about CMM's gold seserve in the ground, many long term investors among us including myself have a sight at from $1.50 to $2.20 within 12 months if CMM ramp up its operation all by itself without this damaging merger. One anlalyst goes as far as valuing CMM at $3.51 based on currently disclosed reserve/resource.

chump said...

inquiries@osc.gov.on.ca

Inquiries@bcsc.bc.ca

the person who acknowledged my correspondence in B.C. is Gary Hehar

Wolf Advocate said...

Fellow CMM Stockholders,
When sending responses to BCSC and the OSC it is always a good idea to attach, preferably as a PDF, relevant articles by reputable authors. In our case this would be, but not limited to, Dennis Boyco, ‘Estimating White Tiger Gold Fair Market Valuation’ and Century Mining Fair Market Valuation’; John Helmer’s Article on WTG/CMM Merger; and our blog’s ”Finskiy’s Planed Takeover” to name but a few.

The idea is to give the authorities the facts quickly in a format that that is not suspect of having viruses. In the body of your responses get to the point quickly, that is, ‘exactly what you want them to do’. Let the attached articles make your case for you. Do leave phone #’s and address for follow-up to prove you are flesh and blood, not to be confused with SPAM. In the USA, anyway, it always a good idea to CC your local government representatives.

As a matter of record, I have not sent the above mentioned articles to the either agency. I am an American who feels that this kind of a message would be better received having come from a Canadian CMM investor. When you think about it, exactly, “What right does an American have to ask a Canadian Government Agency to do anything? The Answer is, NONE, and rightfully so. To my fellow Canadian CMM shareholders on this blog, I implore you to “pickup this ball and run with it” – Canadian Football expression (not soccer) well understood by a lot of people.

chump said...

wolf advocate: you are an investor in a Canadian company and entitled to make complaints or inquiries to the regulatory authorities.

Your being American is no reason or excuse to not take the appropriate steps. In fact, it sounds rather odd.

In any event, your being American may even help encourage the OSC and BCSC to act to prevent anymore embarrasing episodes of inaction on their part.