Something still smells, page-6

Hi Plext,

I have been through this before but no one seems to think it's an issue:

On the 27th September 2016 "CZL Moves to 80% Ownership of the High Grade Plomosas Zinc Mine" You can find and read the announcement.

On the 15th November 2016 "Further high grades to over 50% Zn+Pb intersected at Plomosas"....hidden inside this announcement they say they are "cancelling the accelerated depreciation for capital management purposes".

If it was for capital management purposes it didn't really work. The shares were at 4c. Now the shares are at 1c so they need to give away 4x as many shares to exercise the option. Given that there is a cash component as well they are giving away close to half the company.

Not to mention there is absolutely no disclosure as to how the deal terms could possibly have moved around. It was $500,000 cash + $800,000 shares on the 27th September 2016. Now according to the announcement of 2nd January 2018 "Status of Equity in Plomosas Project" (That's right, you were all on holidays when they snuck this doozey in!) it's $750,000 cash, $1.7 million in shares PLUS $800,000 in shares to "Retec". So they'll need to issue 37% more shares, which is not an issue if the market sees it as adding at least that much value.

They say they can get 90% of the project but earlier announcements say 80%. How did this change? Why did this change? No one seems to want to even acknowledge the obvious inconsistencies in what these guys have been telling the market.

I agree with comments about dilution and small caps etc etc but this is just silly.