Dear long suffering craterites, I would like to make some comments.
1) A few days ago I posted my concerns about the way shareholders have been treated with regards Directors explaining progress in the last 9 months, especially with regards the second adit (at 1930 m level). We were told in two quarterly reports (Dec 2016 & March 2017) that the focus of work was to get the second adit (tunnel) constructed and start gold production by mid 2017. But in the most recent quarterly report (June 2017) we were told that in the last 6 to 9 months only 27 metres of progress was made and that about 13o metres is still to excavate before reaching the High Grade Zone. Also, some of the exploration tenements were not renewed on time. Unbelieveable! And do they have no shame - about $250,000 was paid to these Directors in each of the quarters while the company went close to bankrupcy and their reports told us porkies. ASX should take a good look at these Directors.
2) And talking about funds, please correct me if I'm wrong. As I see it, loans were made at 10% pa interest to Freefire and selected individuals. Now, after 3 years, the loans mature and all funds plus interest will be paid back from shareholders funds (from the issue of 11 for 2 shares). So Freefire can meet its payment of $6.6 mil,from its repayment of loan & interest. Meanwhile shareholders need to find new money, while share prices have crashed because the Directors lost their way in the last 3 -4 years. Is this process proper?
3) The new company is porposing that they will tell us in 6 to 9 months how they will approach the second adit of the High Grade Zone. That's no good. My advice to them is to give up work on the second adit - just use it as a drilling platform. Instead, pay the Papua New Guineans the wages that they are entitled, and give them the task of digging a sloping adit downwards from the first adit (from the 1960 m level). The first adit was in the gold bearing veins, so stick with it and develop a down-sloping adit which goes deeper into the three veins of gold that you have identified. This work should be carried out as a priority and it can be done on a small budget - mostly wages to the PNGeans. And all the gear is in place. Once you get the new funds from shareholders, just pay the workers and let them get gold production underway again. If now why not? Were the veins of bonanza gold a deception?
4) So what do eligible shareholders do now? Hell, what a dilemma. I've got about 500,000 shares which I bought at about 3 cents each ($15,000 invested). The offer is to pay about $25,000 to take up the options, or do nothing (and put my shares in the bottom drawer for a year and see how it plays out). What are you going to do? Please put your views up for us all to read (cheaper than paying a financial advisor).
Best wishes.
CGN Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
