Jaime Pinto, Chairman, said "we are truly sorry that the subsidiary's management team and community relations team have acted in an unprofessional manner and have used the Community issue as a way to advance their personal agendas. We have an Extraordinary General Meeting of shareholders scheduled for November 26, 2015, and while this new information has come to light late, I hope shareholders will carefully consider this announcement, as well as all previous announcements by the Company, before they cast their final vote."
The Daily IKN email digest, get all daily posts sent to you next day (& no ads)
Here's how Louis Lobito Little Wolf James of Casey Research talked up Carpathian and got you all in:
- Carpathian Gold (T.CPN, C$0.29, 555M SO, 590.5M FD, C$161M MCap, www.carpathiangold.com)— We've written quite a bit about this company. The bottom line is simple: the company is trading at a discount to the value of the gold mine, is on track to deliver on time and on budget in Brazil, and on top of this, it has a huge gold-copper resource in Romania for which the market is giving it no value. The stock will almost certainly rise based on the former and could eventually become a 10-bagger based on that alone, given the low starting point. It's hard to put odds on the Romanian blue sky, but whatever they are, free is a great price, and the consequences of success with that project would be huge.
Carpathian Gold Inc. Announces RestructuringTORONTO, ONTARIO--(Marketwired - Nov. 20, 2015) - Carpathian Gold Inc. (CSE:CPN) (the "Corporation" or "Carpathian") advises that, as a result of an agreement (the "Option Agreement") entered into between Macquarie Bank Limited ("Macquarie") and Brio Gold Inc. ("Brio"), Brio has been granted an option to (i) acquire all of Macquarie's rights and interests in the project loan facility, the gold purchase agreement and the gold sale and purchase agreement and related guarantees previously entered into by Macquarie and the Corporation, MineracaÌƒo Riacho dos Machados Ltda. ("MRDM") and certain other subsidiaries of Carpathian (collectively, the "Obligors"), and (ii) receive from Macquarie an assignment of Macquarie's security in respect of the foregoing agreements (all of the foregoing agreements and the security are collectively referred to as the "Financial Assets").Pursuant to the Option Agreement, Macquarie has agreed to forbear from exercising any default-related rights, remedies, powers or privileges, or from instituting any enforcement actions or collection actions against the Obligors under the Financial Assets until the earlier of (i) the exercise or early termination of the Option Agreement and (ii) February 15, 2016. Under the Option Agreement, to the extent that cash flows from the Project are insufficient to meet ongoing costs and expenses, Macquarie has agreed with Brio to continue to provide funding to MRDM, subject to the terms and conditions set out in the Option Agreement. Any drawdowns requested by MRDM under the project loan facility remain subject to the discretion of Macquarie.Furthermore, the Corporation has entered into an agreement with Brio and Macquarie (the "Restructuring Agreement") whereby the Corporation and Brio have agreed that, in the event Brio exercises its option to acquire the Financial Assets under the Option Agreement, the Corporation will work with Brio with respect to a restructuring procedure to be initiated by Brio with the objective of transferring 100% ownership of MRDM's Riacho dos Machados gold project in Minas Gerais, Brazil (the "Project") to Brio (the "Restructuring"). Pursuant to the Restructuring Agreement, Brio will deliver to the Corporation and its directors a full release and discharge with respect to any liability under the Financial Assets, including the Corporation's guarantee thereof. Following the Restructuring, the Corporation shall continue to own its Romanian assets, but shall have no ownership or interest in, or liabilities in respect of, MRDM or the Project.As well, upon closing of the Restructuring, Brio has agreed to a US$1 million subscription of common shares of the Corporation, the whole at a price to be mutually agreed and subject to the requirements of the Canadian Securities Exchange.
Dedicated to James.
We hear that at least one executive of BTO is stuck inside the Radisson hotel in Mali where the hostage event is taking place. Here's a wish for safety for one and all in there.
UPDATE: This is good.
B2Gold Corp. confirms that two employees were staying at the hotel at time of the incident. Both employees were safely extracted by anti-terrorist soldiers between 15:30 and 17:00 local Bamako time and are safe. T
BTO's full NR here
Style beats substance every day:
TERMS OF THE AGREEMENT:
Under the Agreement, Peñoles may earn-in up to a 100% interest in the Properties by paying to First Mining a total of $1.5 million over five years. If Peñoles completes the acquisition of the Properties, First Mining will retain a 2% net smelter return (NSR) royalty, which may be purchased by Peñoles. All mining concession taxes and assessment work for these properties as required by law, will be paid by Peñoles.
full thing here
The Board of Minera IRL Limited Promotes Conflict in the Community of OllacheaLima 19 November 2015: Minera IRL wishes to report that the Board of Minera IRL Limited is promoting agitation and conflict in the Community of Ollachea, with the goal of destabilizing peace in order to have a group of community members sign a declaration in their favor, one week before the EGM of Company shareholders on the 26 November.Mr Jaime Pinto, non Executive Director leading the Board of Minera IRL Limited, is under criminal investigation for charges of corruption and generating losses of US$50 million for the Peruvian State.The investigation is in process against Mr Pinto before the 2nd Provincial Criminal Prosecutor's Office which specializes in corruption charges for public employees. This investigation relates to the loss of large sums for the purchase of external debt during Mr Pinto's time of employment with the Peruvian Ministry of Economy and Finance.Also, during his time as CEO of Mantaro Peru SAC, Mr Pinto utilised divisive practices in neighbouring communities to the Phosphate Exploration Project in Junin, the Project remains paralyzed indefinitely.The Board of Minera IRL Limited is currently promoting division in the Community of Ollachea, failing to use the proper channels of the elected Board of the Community, or to respect the Community's statements. These actions have been reported to the National Office of Dialogue and Sustainability of Counsel to the President and the Office of Social Development in the Ministry of Mining and Energy.Through meetings with a small group of community members in Lima, distribution of leaflets, the convenient editing of private meetings with the Community and looking for signatures in the streets of Ollachea, the Board is promoting the removal of the actual President of the Community, generating insurgency and disrespect for the decisions of the Community Assembly.The small group of community members who met in Lima with Mr Jaime Pinto,(as reported in their press release of November 13), were instructed by Mr Pinto to distribute his letter, which accuses the Community of being manipulated, and questions their decisionThis leaflet and press release from the Board of Minera IRL Limited, generated a response fom the Board of the Ollachea Community, who are qualified to respond, according to the Law of Rural Communities of Peru. Their statement asked for respect and that Mr Pinto abstain from continuing with those same actions.Despite this, the Board of Minera IRL Limited persisted in its actions and published in its website conveniently edited videos of a meeting with the Community held on November 7. The meeting lasted for over 2 hours and the edited video only presents 6 minutes. The end of the video features messages (not from the Community) downgrading the Directors proposed by shareholders for the EGM of November 26 and mentions one of the shareholders of the Company.Minera IRL SA laments that the current Board of Minera IRL Limited, due to its lack of knowledge about Communities in Peru, is generating conflict, at the expense of 8 years of good relations developed with the Rural Community of Ollachea, and reiterates that charges of these dealings are before the correct authorities.
UPDATE: Here's UK brokerage SP Angel, who doesn't fall for the Team Hodges BS at all.
- No matter that such community meetings are always open floor and all opinions are welcomed.
- No matter that people for and against any given subject are always encouraged to talk.
- No matter that the meeting was very typical, with a few voices anti and the vast majority pro.
- No matter that after the very democratic and open house process, the meeting signed a declaration of full support for Team Benavides.
- No matter that recording a private phone conversation and then broadcasting it is a very serious crime in Peru
- No matter that these people have already shown their "editing skills" with the community meeting video, beautifully cut to seven minutes.
- No matter that the relationship between IRL and the community before Team Hodges showed up was always harmonious and transparent.
UPDATE: In a town of 700 voters, the usurpers have managed to gather the sum total of 20 signatures today Thursday. They're still going to use this as evidence of a total split though, mark my words. Utter scum.
Something you need to know about Jaime "I'M NOT HODGES!" Pinto, non-executive chair of Minera IRL (IRL.to) (MIRL.L)
Back in late September IKN ran a note entitled "The Talented Mister Pinto" which outlined the story of Jaime Pinto (aka Jaime NOT HODGES! Pinto) of Minera IRL Team Hodges and his deep connection with a U$50m corruption scandal under the Fujimori government in the 1990s. It also noted how in 2003, after a Congressional investigation into corruption, the people running the investigation recommended that Jaime NOT HODGES! Pinto face criminal charges for his role in the affair.
Money managers, who have cut their net length, are “mostly prepared” for a Fed hike, says HSBC. “This may explain gold not falling on the release of the ostensibly bearish minutes,” HSBC says. “It is possible that the gold market has largely factored in a rate rise. This leads us think gold is likely to trade sideways to slightly higher, at least in the near term.”
Probably just a coincidence.Let us be clear:
- The reason why gold’s been weak is that the dollar’s been strong
- The dollar got strong because of the US Jobs number
- The US macro improvement indicates that Janet will raise the base rate in December
- That move needed to be baked into gold.
- It’s now baked in.
- And that’s all.
Ignore it if you like English language bizmedia, but the Samarco (BHP/VALE) tailings disaster story isn't going away
Iron ore residue from the collapse of a mining dam, part-owned by BHP Billiton, has been passing down the Rio Doce in south-east Brazil. Pollutants have killed aquatic life and left residents of the towns of Resplendor and Baixo Guandu without clean water
Go see it all here
Amazingly, there are still idiots who in 2015 have been recommending this company's shares to people, saying that it's cheap and stuff. With that in mind I'm going to put the next bit in bold type, just to make sure it catches your eye at the late stage of a long-ish post:
You may think 7.5c, or even ATN's recent 10c or 11c level, is a cheap price for a share price of a producing and operating gold mining company. Believe me, it's about to get a lot, lot cheaper because once Waterton's done with ATN this equity is going to be smashed into tiny little pieces.
Do yourself a favour, ladies and gentlemen of the retail investment community, make note of the names of the people who've been pumping this utter junk at you and remember never to listen to anything they have to say about investment ever again. "Stop The Stupid" applies to your own trades, it also means that these blithering idiots need to be weeded out of the mine chattering class as soon as humanly possible.
Atna Resources Ltd. Announces Filing Of Voluntary Petition For Relief Under Chapter 11 Of The Bankruptcy Code To Implement Restructuring And Delay In Q3 Filings
"The Company and Waterton Precious Metals Fund II Cayman, L.P., Atna's pre-petition lender under a secured facility, have negotiated a consensual use of the Company's cash and have entered into a debtor-in-possession financing arrangement (continues here)"
Here's the best bit from today's presser held by Jaime Pinto and his happy band. When asked by one of the reporters about the salaries being earned, Jaime Pinto mentioned that he wasn't being paid anything except for a small retainer, plus has no type of success bonus set up. But let's leave aside the strange thoughts of just why he's working "25 hours a day" (his words during the presser, not mine) for virtually zero pay and move to the answer to the follow-up question that came from another of the reporters there.
Pinto (finishing his point): "...I'm not paid anything."
Reporter: "Neither is Mr. Hodges?"
Pinto: I'm not Hodges! If he made mistakes he will assume his mistakes. Yes I know him but what I want to say is...(pause) ...I...(pause)...there's these blogs..."Team Hodges", I have nothing to do with Hodges. I'm not Hodges, I am Peruvian, a respected Peruvian lawyer. I have nothing to do with Hodges."
- KGI had 80.6m shares out priced at $5.23, therefore a market cap of $421.54m
- SAS had 368.27m shares out priced at $0.38, therefore a market cap of $139.9m
- Therefore total market cap: $561.44
Here's Jaime Pinto and friends, holding a press conference in Lima this morning.
They're running down the company's eight point plan, recently released, that explains the company wants to turn its back on an agreed U$240m financing deal in a difficult market and dilute the company's share count to merry hell. And the reason? "Because".
These people are crazy! They want you to agree to refuse a cheque to fully fund your mine! In this market!
But what you can't see in this is that he's speaking to just four people. Well, five if you include the photographer.
Not going well, is it Jaime?
UPDATE: My fave Q&A so far:
Q: "Why haven't you travelled to the Ollachea project?"
A: "For safety reasons."
Just wonderful, Jaime. Pure comedy gold.
The Board of Directors of Minera IRL Ltd today announced that it has filed a request for a criminal investigation against Diego Benavides and others in relation to the US$70m bridge credit agreement with COFIDE
- Sherpa is a legally constituted Company that acted as financial advisor consulting to Minera IRL SA, the Peruvian subsidiary. Sherpa was not contracted to the parent company, Minera IRL Ltd, as COFIDE does not fund foreign companies. Sherpa’s services were required in order to set up the bridge loan between Minera IRL SA and COFIDE in order to finance the Ollachea Project.
- The finance agreement was approved by the Board of Directors of Minera IRL Ltd and signed off by Mr. Daryl Hodges, ex-Executive President of the company, who despite not having participated actively in the process and only having been named Executive President in March 2015, awarded himself a bonus commission of up to US$250,000 for the conclusion of the final US$240m credit agreement.- With the US$70m Bridge Loan Agreement, Minera IRL Ltd avoided bankruptcy as it allowed the Company to pay its US$30m debt with Macquarie Bank due on June 30th 2015.
- The bridge loan funds were also used to pay the US$12m owed to Rio Tinto, the main shareholder of the company.