If voluntary administration is truly a result of a disagreement between CMR and HNC, have HNC failed to fulfill their commitments? If so, are they in breach of contract? Would this reduce their rights as creditors?
Surely a brief explanatory statement would have been the least CMR could do to explain the decision to go into administration so soon after their decision to go ahead with a capital raising and on the morning of an EGM.
Where is the accountability?
17 Sept 08: "Additional fire and safety requirements have been addressed and the nickel/cobalt circuit is well advanced with production of precipitate expected in early October."
17 Dec 08: "Cobalt/Nickel - Commissioning of the circuit has taken longer than expected, however we expect production of cobalt/nickel concentrate to commence in the next week."
14 Jan 09: Decision to upgrade screens to enable cobalt / Nickel production at expected quality and volume.
How does 4 weeks work take 4 months to not do??? Or 1 week work take 4 weeks to not do. I highly doubt it was the fire and safety requirements that delayed the circuit. A bit like blaming the lack of site power on delays when the real cause of the delays is the project itself.
I seem to recall one of the directors, possibly GT, selling shares a year or so ago and the reason given was that they needed the funds to purchase a house. It had a significant impact on the share price. I am unsure where the information originated, but I wonder if there was a new house purchased, and did the value of the house reflect the value of the shares sold??? If there is no such house and the information was provided via phone or email to a single shareholder, can it be considered misinforming shareholders?
When you look at the overall picture and piece all the announcements together in a timeline, you really do feel like we have been treated like mushrooms.
Sentiment: disbelief
CMR Price at posting:
15.0¢ Sentiment: None Disclosure: Held
