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Ann: Findings of Corporate Review, page-52

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WoodySpoon

9,725 Posts.

2937

16/08/17

18:42

Post #: 26542731
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Originally posted by boy1 ↑

A thorough report released…I can see why the review took as long as it did and would hazard a guess that a packet or 4 of Panadol would have been consumed working through those wide range of issues… definitely a corporate review occurred…

My take…

Replacement of Auditors – Funny how they wont hand over work papers… I wonder if its because there was no work, or no paper…
Management Changes – Necessary considering we are now looking forward
Morila Option Agreements – Appears the contracts were badly worded, not executable, had holes in them so that we could be liable for further payments down the track, didn’t account for all parties who get royalties, opened the tenements for transfer to other parties….was a lawyer even working with us? We had 4 years to sort through a gold deal and it is just substandard. Lucky all accounts are that RG will follow through as we do have enough gold and money to go around, just might take a bit longer to sort out so I wont be expecting the 1m USD for a while… meanwhile the Ntoila and Viper projects progress.
Goulamina Project – Sounded like our tenement wasn’t water tight secure, but now is… thank god because this thing is hugeeee.
Performance Rights – Will reserve comment
Advisor Options – Interesting….
Shares issued to related party without shareholder approval – Good to see a decent outcome with money going to charity.
Liberia – With the badly worded contracts such as the Morila one, I think this review is justified as we don’t want to be exposed to any further issues over whatever agreements may have been in place… I wonder how well their contracts register was kept if Grant Thornton missed a lot of things?
Tax Obligations – Don’t know where to start here… like really?
Payments to related parties – Long service leave after 5.5 years? Who the hell approved that? That’s pretty black and white? I imagine the current directors will soon make a transition to working on an annual basis and not an executive basis… so expect the daily rate to drop to an annual fee…
Restatement of Accounts and Annexure B – A lot of incorrectly calculated values for options and shares… I hope the old board used the right values correctly for their own taxation purposes…
New Boards Options – i know there is some angst out there regarding these and i can understand but il be voting in favour for sure.. they have market and performance based triggers so it wont be a quick fix and grab, wa fair bit of work needs to be achieved (perhaps even a Take over?) other than getting us to 100% of the value we are now at… the way i see it, the directors cancelled about 10m options/shares at a low average price of about 15c… so our net position is 2.5m less options with a 3x higher strike…. And a quality board…

All In all, im guessing Friday earliest for trading, Monday/Tuesday next week as buffer….

Our company is clean, our asset is secure, our asset is world class, our management have more than proven themselves as A graders and are ready to expand the board along with the growth in the company…

Auger results soon, PFS results soon… Mali minister in town….Its all moving in the right direction...

and I am ready.

Expand

Regarding new board options.
How about someone put up a proposal for 1 mill rather than 2.5? We all can see what those will be worth in a couple of years.
Sure reward them, but 2.5 for just turning up to work (the milestones are all a given by any competent employees) is WELL out of order.
Sure as night turns to day they'll be back for another 2.5 mill (and more!) for every milestone after too.

Give them 2.5 mill for the achievments I outlined i post above, THOSE achievments require skills and will also reward long suffering shareholders. 1 mill for every other milestone on the way.

BGS Price at posting: 22.5¢ Sentiment: None Disclosure: Held
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