a summary of our grievances

Hi everyone

I am reluctant to open a new heading when so much valuable info is being shared on avenues of action and complaint elsewhere, but I hoped to draw the disparate strands of our discontent into a more tightly woven 'thread'. I have listed below the issues about which I feel most strongly and which I believe require clarification from management. I hope that others will send messages of their own to the board so that the resolve and determination of shareholders to strike a better deal gets through.

Here's the email I sent:

'As a shareholder with more than 2 million shares in our company, I am writing to express my anger at management’s endorsement of what I consider to be a risible and opportunistic offer by Lion Gold. Along with hundreds of other investors who invested in SBL for its attractive acreage, aggressive exploration targets and oft-stated objective of a move to 100,000 oz production over the next couple of years, I am shocked at the sudden announcement that all of these plans have been abandoned by management in favour of accepting a ridiculously “low-ball” offer. I am well aware of the difficult times our market has experienced in recent months but you and your fellow directors have done little to stem the share price decline through regular market updates. In particular the market has been waiting for information on the following matters:

1) Opex to date and projected costs once in full-scale gold production
2) Assay results from recent exploration which are now months overdue
3) Progress on the manganese discovery / development of a business plan for further delineation & exploration

I would ask you to also please explain the following:

1) You and your fellow directors are charged with advancing the interests of the shareholders. The share price was 4.6 cents only a year ago – before SBL was even in production - so how can an offer that is less than half that win the unanimous approval of the board?
2) Clearly Lion Gold sees tremendous potential in the company’s prospects so why sell the company so cheaply just as it approaches profitability?
3) Why not advance the project further, using the proceeds of increased production to explore the deeper zones that are elsewhere so productive on the Ashanti Belt and further delineate the extent of the manganese resource
4) Is there a link – direct or indirect - between Infiniti and Lion Gold? If so, what is it?
5) Was the Board aware that an offer from Lion Gold was forthcoming when it agreed to the share placement with Infiniti at 1.5 cents? If so, why was this placement undertaken at a discount to the current offer and why accept another diluting share issue at such a point?
6) SBL has one of the lowest EV/oz ratios of any producing gold stock on the ASX as you have repeatedly reminded shareholders in company updates. Why then sell the company at this laughable estimate of the company’s worth?

As you are no doubt aware, due to the lack of information on the above matters, a great deal of suspicion and anger has arisen amongst many shareholders. According to the growing tally on Hotcopper of shareholdings, some 100 million shares (and this number is still growing) are held by those who are opposed to the takeover on current terms – particularly the attempt to block better, alternative bids. The sense of being betrayed by its own management has some angry shareholders talking about calling an extraordinary meeting to replace the board or even mounting a class action to ensure shareholders’ best interests are served by the board.

I share their anger and request a clear response to the questions above. Because the queries raised are of general interest to all shareholders, I would ask that your responses be framed in a Letter to Shareholders within the next few days.

I look forward to your reply, but my faith that the board acts in the best interests of its shareholders has been damaged irretrievably by what has occurred.'

***********Email ends**************

I hope that management will be hearing similar feedback from all quarters - including perhaps some top twenty holders - and will be forced to provide more information. In the meantime, I am going to hold my shares and I sincerely hope many others will do likewise. They can't take it if we don't let go of it, can they!

DYOR

Gupper