Boardroom Power Play showdown, page-26

In the mail this morning I received 2 letters, one from Michael Fotios; the other from Rob Martin.

Essentially, each writer responds to bad things said by others; and fair enough too I suppose.

These are points of interest though. The italicsised words are mine.

Michael Fotios' letter - pro Investmet

1. The Mandevilla group concealed its members' true holdings in Auris. (I thought that the takeovers people accepted that as being an oversight - need to read this: https://www.aurisminerals.com.au/wp-content/uploads/180406-Panel-Declines-to-Conduct-Proceedings.pdf).

2. I have no control over the decision making of the Board.

3. I have a long-term view of Auris. The others do not. They wish to make 'quick money'.

4. It is the current intention of Investmet and its associates to continue to hold their shareholdings after the GM regardless of its outcome.

Rob Martin's letter - on behalf of himself, mainly.

1. In about Oct 2016 I approached Michael Fotios to assist with a CR, and he was interested because he liked the opportunity it offered of capitalising on RNI's copper assets with Horseshoe Metals and Redbank Copper. I was assisting Gary Castledine (GC) who had a Board mandate to raise capital. I had no view on the suggestion of Mr Fotios that to the possible merging of the interests of RNI with that of 'his' 2 companies.

2. Mr Fotios insisted that I go on the Board to ensure that RNI did not make further decisions for funding by selling assets or transferring gold rights etc. (interesting!)

3. GC and Andrew Frazer (AF) were involved in the late 2016 CR. The 3 of us continued to look for opportunities for RNI/AUR (interesting, again - also interesting that the other 2 Board members have said that they did not know anything about this until April 2016), knowing that we could not bind the company in doing that.

4. A JV proposal was first formally put to the board by GC and AF in March 2017. The company did not release the detail on 23/3/18. It was rejected back then. However, a different, and much less worthy, JV was agreed to by the Board in Feb 2018. It was a very weak deal. Also RNI wasted 12 months to what might have been achieved with any agreed improved terms on a $15m transaction; and in stock market parlance, "timing is everything".

5. My understanding is that no discussions, formal or informal, were had with any of the major shareholders on the 2018 JV proposal.

6. I am very strongly of the view that all material transactions should be put before shareholders so that they can express a view on how the company's assets should be dealt with (here, I am sure that he saying that the Board in March/April 2017 should have advised the shareholders of details of the JV proposal - I'm not sure about that though, maybe enter into a Contract first making it subject to shareholder approval would be the process).

7. I have become convinced since March 2017 that Bronwyn Barnes' interests are very much aligned in favour of supporting Investmet's ambitions over the control of the assets of AUR, as opposed to the interests of all shareholders. (imo, that is the crux of it all).

I have left a lot out. I have tied to be balanced. I have tried to be objective too.