EUG "cleaned up"? DRA next?

The business of Eurogold (EUG) have not gone well,
cynic person could say the the bord has managed to clean up
the company from cash for their own salaries without making any succesfull business.

Benefit of the several year's operations goes to directors and to the major owner Allied Properties,
the director Gunzburg is serving all three companies EUG, DRA and Allied Properties.

The three "clean up" directors appears to stay in the Dragon Board,
Dragon has 10 million cash, what will happen next??

This is how it has gone so far:

1.Eurogold invested directly and through Brinkley Mines possiby
about 15-20 million A$ to Dragon mining.
For example in 2010 Brinkley paid 3 million A$ for4.5 % of Dragon,
see Eurogold release Date: 27/01/10 19:52

Lots of money is also lost in Tanami gold Release Date: 29/03/10 20:03

2. Eurogold runs out of cash and looses quotation in ASX. To pay salaries of bosses
major owner Allied Group provides loans with high interest
like 12 %. The amount of loans is 1.750 million A$ at the end of Q2 2014
EUG release 30/07/14 15:28.
Eurogold directors take over Dragon board and salary and board
members compensations. Fees are paid for evaluating Dragon businesses
which were the only property of EUG and the board members should have
been evaluated for years.

Board fees,and evaluation fee
Release Date: 24/02/14 18:59

Dragon Mining Limited (ASXRA) advises that in order to make clear the new Board’s commitment to cost saving
initiatives being undertaken by the Company, individual Non-Executive Director fees have been reduced from
A$50,000 per annum to A$30,000 per annum, and the Non-Executive Chairman’s fee reduced from A$100,000 per
annum to A$60,000 per annum, effective from 7 February 2014, being the date of the Company’s recent general
meeting of shareholders.
The Board further notes it has appointed Mr Arthur Dew as Non-Executive Chairman and Mr Brett Smith as an Executive Director, effective immediately. Mr Smith has been appointed to undertake a comprehensive review of the Company’s operations and will be remunerated at the rate of A$1,500 per day, plus all reasonable expenses, until
such time as the Board has considered his review. Further, the Board will engage its professional advisers to review the Company’s structure.


Salary of executive directer Brett Smith:
Release Date: 31/03/14 17:48

ANNEXURE A
The material terms of Mr Smith’s Employment Agreement are:
1. 3 year term, ending 30 May 2017.
2. Base salary of $400,000 per annum, plus statutory superannuation.
3. Incentive payment of up to a maximum of $200,000 per annum, at the discretion of the Board and subject to
KPI’s.
4. Termination by either party on 6 month’s written notice.
The Employment Agreement contains other terms and conditions standard for an agreement of this nature


3. Allied Group underwrites the offering of Dragon to other shareholders
of Eurogold for 0.13 AUD per share
providing a total of $2,811,077.10 (before costs).
-> Most of the money goes to pay back high interest loans to
Allied Group
= in other words Allied Group tries to get other owners to buy Dragon
with over-price to get the high-interest loan paid
and likely takes most of takes Dragon shares for Eurogold's loans
EUG release 1/9/2014

4. Detailed use of the money EUG would get

The Offer will raise approximately $2,811,077.10 (before costs).
The funds raised from the Offer are proposed to be applied as follows:
Description of Cash Outflows Amount (A$)
Repayment of Loan $2,130,000 -> Repayment to Allied Properties including at least 380 000 interest for Allied Properties
Estimated Legal and Accounting Costs $35,000
Underwriting Fee $71,552 -> to Allied Properties
Estimated Corporate and Administrative costs $25,000 -> substantially to the Eurogold managers?
Estimated Due Diligence of new business opportunities $200,000 -> substantially to the Eurogold managers?
Working Capital $349,525.10 -> substantially to the Eurogold managers?

If business evaluation and possible business would not be succesfull this time either, Eurogold would be totally "cleaned up" from cash.