You should follow the history of a couple of TS's stable of companies: KPR for one. KPR was the renamed CHM which won a claim of $25m from a matter against Murchison Minerals (MMI) for the misappropriation of mining leases and involved a bloke called Philip Grimaldi. This case is now taught in law schools as what not to do as a director/quasi director. Think Clive. Grimaldi was pursued by KPR for millions, but went in bankruptcy to avoid paying money to KPR. CHM/KPR had a contract with ILP (a litigation funder) to fund a claim against MMI, but CFE became involved and proposed to fund the MMI matter by lending $6m to CHM/KPR, to the exclusion of ILP. KPR then bought into a manganese company on West Timor using $10m of the $25m. East Timor has the highest grade Mg in the world at over 49%. CFE was paid $6m for supposedly loaning the $6m to CHM/KPR. However the CHM/KPR liquidator did a review of the finances and found that CFE was not entitled to the money as it had not lent the money to CHM/KPR and this is reported by the liquidator. ILP sued KPR for breach of contract and won a $10m damages claim - this was a High Court case. KPR entered into an agreement to pay the money. Unbeknown to shareholders, CHM/KPR ceased paying ILP and ILP wound up KPR. Interesting of the $10m paid for the Mg mine in West Timor, $6m was in a joint trust between KPR/CHM and the West Timor company which was supposed to fund development. That money disappeared. It was not reported where that money went- it could have been the West Timor company that used the money. Another matter is Latin Gold - but do your own research of this fiasco - The Raven is fully versed in this matter. Over to you Raven.
CLE Price at posting:
0.9¢ Sentiment: None Disclosure: Held
