My pet stock, that went from a little gem, to a basket case ......
CGM - listed on the ASX - Graphite, Lithium, Gold, drill rig services.
DNI Metals - Canadian listed stock, - Graphite, Graphite wholesaler, (these are the bad guys)
A joint venture between CGM and DNI was formed mid year.
CGM would earn 50% of a prospective graphite site in Madagascar, if CGM drilled the site, put out a JORC, and did a Pre-Feasibilty Study by 31st Dec 2017.
All seemed fine after the first set of graphite results were released.
Lithium grab samples then returned excellent results from Brazil.
The second set of drill results were never issued.
The 30th Oct deadline passed - issue a JORC, we heard nothing.
The next thing I knew, DNI Metals have issued CGM with a breach of contract notice, 1st Dec.
CGM didn't do anything until the 4th Dec, management were waiting for this one.
So this is where the plot thickens;
DNI issues CGM with a breach of contract notice, because of the missed JORC deadline in Oct.
CGM had 7 days to remedy the situation, 10 days go by and we hear nothing.
On the 11th day, CGM hits DNI with an endless list of breaches of contract, and wants arbitration.
DNI doesn't even have a government approved exploration/drilling license for the graphite tenement.
I said WTF - "what the hell is going on here"
It'll make for interesting reading over the coming months/years.
bring on the lithium
CGM Price at posting:
0.7¢ Sentiment: None Disclosure: Held
