Ann: 1.3Moz Resource at Tesorito grows Quinchia to 2.6Moz gold, page-191

Hi Seth,

I would support your theory that LCL directors are very sharp, looks to be the case.

I would question faith in West Perth Directors when you are not behind the curtain and privy to what's actually going on.

Have you every seen a spec stock deal that didn't make sense?, didn't seem to get value for shareholders? or directors recommended something that smashed ordinary shareholders?

Say you had a company the same as LCL, but not LCL, call it LMN's

LMN's has significant resources from the surface and exploration up side with the potential to make $500 mil a year profit.
LMN's gets a take over offer at 40% above a trading range at 16c, valuing the company at $100 mill, 5 x less than second year profit.
The board recommend the takeover to shareholders, why would they do this?

Have you ever noticed Directors sell a company, then turn up shortly after with a new well funded venture with more super prospective leases? Or spin an excellent asset into another company for no reason and cut off or significantly reduce ordinary shareholders exposure to that assets value?

Its most likely LMN's has two deals, the one reported to shareholders, and the back door deal behind the scenes that ensures Directors get full value for the asset.
Illegal you say? Happens all the time in West Perth, and its not illegal unless you get caught, and structured very well so no proof of connection.

Does anyone think the majority of spec stock directors put shareholders first, or themselves?

I'm not saying that LCL directors will shaft shareholders for personal gain, there is absolutely no evidence to suggest this.
I'm saying its common for this particular group of individuals (west perth directors as a drift) to act in this way, so why the faith?


71c4