Found this in my inbox this morning:
UPDATE AND SEASON GREETINGS FROM
PHILSAGA PRESIDENT JOSEPH P. MAHUSAY
Dear Esteemed Ten Sixty Four Shareholders,
As we approach the close of what has been a challenging year, I feel it is important to address you directly. Whilst my last correspondence to you was some five months ago in July, I want to assure you that this period of silence cannot be considered as inaction. My team and I have been working tirelessly behind the scenes to navigate and rectify the complex situation we are currently in. The absence of updates until now has been a necessary measure, as we must respect the timeframes and processes inherent to the legal and governmental systems in the Philippines.
It is with a sense of renewed purpose and progress that I now reach out to provide you with an update on our journey and the developments that have been achieved thus far. This letter is not just an update but an earnest discourse on our current challenges and the path forward. Additionally, I extend my heartfelt holiday greetings to you and your families.
Our journey this past year has been fraught with challenges, significantly impacting our operations and shareholder confidence. Key figures have played pivotal roles in creating the current situation.
We know that there are people who are driven by personal vendettas which have had far-reaching impacts. Their campaign to unseat the previous Board was marked by aggressive and ethically questionable tactics. Their intent was very clear - to place allies in positions of power within X64. However, this move has led to instability and uncertainty, diverting us from our growth path and strategic objectives. This situation was further aggravated by the misappropriation of the Co-O Mine in the Philippines committed by certain personalities. Their actions, post-termination, have not only been illegal but have also jeopardized our operational integrity and shareholder value.
The collusion between pertinent persons within PMC to destabilize and, we assume, attempt to take control of X64, has been detrimental to the Company and yourselves both personally and financially. Their tactics, fueled by personal motives, have not only been unethical but have also threatened the very fabric of your Company's integrity and value. We are dedicated to taking all necessary legal measures to ensure they and their enablers are held accountable for their actions.
A defining moment in our recent journey will be the recognition by the Securities and Exchange Commission (SEC) here in the Philippines as we are already working on it closely with our new connections and legal luminaries who are helping us get there. This will definitely mark our claim and full control over PMC as soon as possible and we will take necessary legal action along the way.
In the current tumultuous landscape of X64, the actions and decision-making of the current Board have raised significant concerns, particularly when viewed against the backdrop of substantial directors fees. Most notably, the involvement of two directors who undertook an unauthorized visit to the Co-O mine, blatantly disregarding local sensitivities and preferences. This incident, prior to their directorship, casts a long shadow on their judgement and commitment to the Company's welfare.
Adding to this, the roles of several shareholders on Board have not aligned with X64's strategic and financial objectives. Their focus seems to be more on the benefits of their positions rather than contributing substantially to the Company's progress. This is particularly concerning, especially with the publicly available information which further invites scrutiny.
Most critically, the decision by the current Board to place X64 under voluntary administration was not due to insolvency but stemmed from their own inability to secure insurance - a clear indicator that this was not a decision made in the best interests of the Company or its shareholders, but rather one of self-preservation. Such actions question the efficacy of their governance since taking over on June 20, 2023, and whether their leadership has translated into any concrete benefits for X64 and its shareholders. This lack of alignment with the Company's welfare and growth underlines the pressing need for a change in the Board, towards a leadership that prioritizes the Company's and Shareholders' interests over personal gains.
As Shareholders, you have the right to scrutinize and question:
■ What tangible actions has the current Board taken to rectify the operational and financial challenges the Company faces?
■ How have their decisions since taking over in June 2023 translated into concrete benefits for X64 and its Shareholders?
■ Is the compensation they draw justified by their contributions to the Company's welfare and growth?
In response to these challenges, I propose a strategic restructuring of the X64 Board - an interim Board whose sole purpose is to get X64 relisted on the ASX as soon as humanly possible so that you the Shareholders can trade your shares as and when you choose. This proposed interim Board would include myself, a highly respected legal professional from the Philippines and two other Australian professionals. This is not just a structural change but a strategic move towards unifying X64 and Philsaga. As the legitimate 60% shareholder in Philsaga, my presence on the Board, along with a fellow Filipino, ensures a unified vision and operation towards our common goal. This proposal has garnered the support of some of the major Shareholders, reflecting a collective desire for recovery, change and progress. This new board structure is aimed at fostering a more cohesive and efficient approach, uniting X64 and Philsaga to focus on recovery, growth and ethical governance.
On another note, I would like to express sincere gratitude to Mr. Jeff McGlinn, who despite no longer being an officer of X64, has been instrumental in our journey. His commitment as a shareholder and his personal contributions both in time and finances, have significantly helped steer us towards where we are today. His support has been invaluable, and for that, we are deeply thankful.
As we enter the holiday season, a period for reflection and renewed hope, I am grateful for your continued resilience and patience. The challenges we have faced together have only strengthened our resolve to emerge stronger and more focused.
May this festive season bring peace, joy, and moments to cherish with your loved ones. As we look forward to the new year, let us unite in our resolve to turn challenges into opportunities for growth and prosperity. Let us do so with optimism and a renewed commitment to our shared goals and the bright future of X64 and Philsaga.
Together, we will strive towards a future where X64 and Philsaga, as one, achieve their full potential, delivering the rewards that you, the Shareholders, rightfully deserve.
Yours very truly,
Joseph P. Mahusay
President
Philsaga Mining Corporation
Expand
(20min delay)