I did receive some correspondence concerning this matter as set out below without alteration:
Eddie
You invested in a company that went under, it is unfortunately a risk inherent in investing. The holding costs for projects such as Leonora are significant, and this company had no funds to meet those, the reality is that even if it were possible to get $8m for this asset, which it is not, shareholders would still get nothing. I have been doing this a long time, and I am not sure what you are inferring needs scrutinising, but on both a competency and integrity basis I am completely satisfied. I don’t intend getting into any further debate with you on this.
From: eddierobinson [mailto:[email protected]] Sent: Friday, 6 June 2014 4:03 PM To: Bryan Hughes Subject: RE: Sell out
Dear Brian. So you are essentially saying that the company has undergone a CR and restructure whilst insolvent and the independent expert engaged by KIN who gave a valuation of $8 million+ leaving a gap of approximately $5 million is a good outcome for shareholders and does not warrant scrutiny?
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-------- Original message -------- From: Bryan Hughes Date:06/06/2014 5:40 PM (GMT+10:00) Cc: Renee O'Driscoll Subject: RE: Sell out
Dear Eddie
I refer to your email below.
I assure you that I take my statutory responsibilities as an external administrator seriously and I have accordingly undertaken a comprehensive marketing and sale campaign to ensure the opportunity to acquire the Leonora Gold Project has been widely circulated across a wide range of prospective buyers to achieve market value.
The Navigator Group had a substantial debt to creditors upon my appointment, and the timing of my appointment coincided with a material downward movement in the price of gold which heavily impacted on investor sentiment in relation to this commodity, as well as the most difficult capital market in some decades. Accordingly, any interest in Navigator assets has been at a substantially lower value than could have reasonably been expected to have been achieved some 18 to 24 months ago. I have held and maintained these assets for some 14 months to achieve the best possible outcome and unfortunately in these circumstances the offer presented by Kin Mining is by far the best proposition for the Group. The cost of maintaining the assets has been met by the secured creditor to ensure all possible alternatives were properly explored. These costs are expensive and not sustainable ongoing in these circumstances. I also note there is a substantial shortfall to creditors, including the secured creditor, all of who rank ahead of shareholders.
There is still a possibility that I may be able to restructure and/or recapitalise Navigator Resources Ltd (Subject to Deed of Company Arrangement) in which case some value may be preserved for shareholders. Once the shares in this company’s subsidiaries have been sold, I will be in a position to progress this proposition in due course.
