recent comments, page-10

Greetings,

I'm a history buff, and I'll be sharing little bits of CHM history with you so that you can balance your perspective...

Judge queries miner manager's competence
By Neale Prior (The Age)
January 7, 2005


A NSW Supreme Court judge has questioned the quality of management at Chameleon Mining and raised questions about whether Chameleon will recover a $3 million deposit it made to a mystery group called Zenith Development International.

Justice Rex Smart said a statement made by Chameleon management to the stock exchange two months ago about the $3 million deposit did not inspire confidence and he rebuffed a claim by Chameleon managing director Greg Barnes about a mechanism by which the company would recover its money.

Justice Smart made the comments in a judgement this week explaining his decision to last month grant an application by major Chameleon shareholder Robert McLennan to appoint a liquidator to the Perth-based explorer.

Sydney liquidator John Vouris now has the job of unravelling the company's affairs. Chameleon listed on the stock exchange in August 2003 and had the distinction of being the market's worst performing float for 2003-04.

The company made a controversial $3 million payment to a group that was supposed to be arranging finance for its stalled acquisition of the Cerro Negro copper project in Chile.

Chameleon, which was suspended from the stock exchange in September, made a provision for the $3 million in its full-year accounts.

In evidence, Mr Barnes said there was no document he could produce as evidence of the $3 million deposit for the benefit of Chameleon. Zenith Development's Australian subsidiary had been wound up.

Justice Smart said: "It is not easy to understand how Chameleon, if moderately competently managed, could end up losing or putting at substantial risk $3 million in the manner suggested in the evidence."

He said a substantial amount would have to be found for the Cerro Negro purchase, due to be completed in March, to proceed. Chameleon did not have funds to pay its debts as they fell due, the judge said.

Sorry, I just want to make sure... did you guys read the part about ...controversial payment.... and ... there was no document he could produce as evidence of the $3 million deposit for the benefit of Chameleon... Does that ring a bell somewhere ????

For your benefit, I'm also digging up the article which outlines how after the company went into liquidation, the shareholders got sweet nothing, but someone else got an opportunity to buy it for a song, then re-list it... and, you all know the rest...