If I am not mistaken, the 249D notice is "the process" of what the law requires to convene a meeting of the shareholders. The meeting will have an agenda with resolutions to vote upon.
Well before the proposed meeting, the company will send each and every shareholder an information packet to help make an informed decision. I suspect this is where the master plan proposed by the rebel alliance will come to light.
Each individual resolution on the agenda will be voted upon and the vote count will decide if that individual resolution is carried (or not).
The key message is that nothing will change unless the majority of shareholders agree after having sufficient time to digest the information packet.
The information packet would likely contain the proposed plan by the incoming directors. It would also likely contain commentary by the current directors why this would be a bad idea (but they would say that, wouldn't they?)
The 249D is an act of defiance against the incumbent directors in the spirit of democracy; shareholder activism to break the status quo. How bad must things be for (pesky retail) shareholders to take such a drastic step? Lets have a quick recap of the highlights reel:
A "positive" scoping study but no numbers for shareholders to digest and analyse.
Halt on all cobalt-related activities as the project is not economic at the (then) cobalt prices, despite being the 5th largest CO resource in the world.
Still no clue what constitutes a cobalt price threshold to reboot project activities.
Mr Oliver was at the helm when the company was known as Celsius Coal. Respectfully, the BOD could not make a go of it then and could not make a go of it as a cobalt company. Nickel > Online Gambling (FavourIt) > Cobalt. Now we're hunting for another project to save us.
Mr Borg stepped down to start a new company and recently found a new project (19th Aug 2019). Took a full time job with that new company (4th Sep 2019). Good luck and best wishes, nice guy, but why still a director of CLA if interests are elsewhere?
No current full time "executive" directors running the company (??) despite burning through cash (ref: Quarterly Cashflow Report 31st July 2019) with no explanation of where the money is being spent. Oh well, we can always do another cap raising when funds run low I suppose.
Northwest Anticline target model completed, but July Quarterly said "The consultant advised that currently the broad spaced drilling and data densityin this zone was insufficient for a Mineral Resource to be classified under the JORC Code. The resultant resource estimate was therefore only able to be used for internal purposes."
Project viability is dependent upon BOTH cobalt price and met work studies. But the July quarterly said "Review of flotation results has identified an irregularity between the chemical assays and mineralogical reports which needs to be understood before theseresults can be published." Gets better - "In addition, initial tests where it was thought sinter was formed have now been reinterpreted torepresent formation of ferrite. However, off gas testing has not confirmed the reactions taking place, in part dueto the methodology of collecting the gas samples in the testing laboratory. A number of further tests are requiredto obtain a representative estimate of the recovery possible through roasting, which will then need to bereplicated to confirm repeatability of results."
"During the Quarter the Company continued reviewing potential acquisitions and investments in commodities which complement or diversify the Company's current commodity exposure." .. how's that going? HC speculative posts published then pulled, citing a Twitter post .. something about Ireland.
All of this has left me wondering, what on earth is going on here? Who is running the company and are they the best people for the job? Are we just going to hope and pray the CO price continues to improve, reaching some magical threshold where the project is again economic, whilst perhaps waiting for a better more attractive project to wink in our general direction?
In my view the company needs fresh blood and fresh eyes. A daunting and drastic step, to be sure. Many people hurting and underwater on their investments. I think we can all agree that we all want the share price to go up .. just can't see that happening with the current status quo.
Interesting to note the CLA announcement Friday afternoon said "The Company is making this announcement in the interests of full disclosure " which is ironic, considering we are being kept in the dark on so many fronts. Not a single activity-related market announcement since July.
The 249D process should bring matters to a head, one way or another. Let the shareholders make up their own mind after the information packet is sent out.
CLA Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
(20min delay)