Hello fellow shareholders in Peak.This is a disappointing time...

Hello fellow shareholders in Peak.This is a disappointing time for us. All our hopes of a big profit from mining this immensely valuable resource have disappeared!. At first I thought this resulted from the Tanz. Gov. threatening to revoke our Special Mining License due to our inability to finance it's development, this due to our partner, Shenghe's, slowness in signing up to the Partnership. But on carefully reading the May 15th Announcement, I now think this was wrong. If you read the following paragraph , viz :-
"However, recent geopolitical and regulatory developments have increased the risks of successfully establishing an incorporated joint venture between the parties. As a result, Peak and Shenghe have evaluated alternate transaction structures to the NGUK Transaction that could support greater transaction and project certainty, and a superior outcome for both companies and shareholders."
it now seems to me that our partner - Shenghe - could not get their Chinese Government's approval to participate in the joint venture with Peak. The thinking is that Shenghe are more likely to get that approval if they have full and exclusive ownership. This is the "geopolitical risk" referred to in the above paragraph. Probably partly provoked by Trump.

Our Board of directors have concluded that the safest thing to do is to recommend to us that we vote to sell all our shares to Shenghe. Yes they will be getting this immensely valuable resource for fraction of it's real value. Probably for less value than we share holders have put in over the 15 years of drilling, assaying, negotiating and all the recent "preliminary works". Our Board of Directors say they unanimously think to sell is the best "risk weighted decision".

Some shareholders think that a superior offer could be made by some other big miner. Unhappily, i think this is just wish-full thinking given that "binding Off take agreement".

Some share holders think the coming vote on the Scheme will be voted down at the Special Meeting in September, and that Shenghe will then make a superior offer. My opinion is that this superior offer is unlikely to happen. This is because Shenghe now have the strongest hand, and, from their point of view their present offer is generous.

So, where are we?. If the proposed Scheme is voted down and Shenghe walk away - what then?. Is it possible that Shenghe could go tot he Tanz. Gov. and say - give us the Special Mining license, for we have the money to develop the mine immediately. Actually, this might already have been said, for a recent Post on this Hot Copper Forum revealed that the Tanzanian Government had announced to their local news papers that work on the mine would start before the end of this year, with a view to first production before the end of next year.

After much thinking I regretfully think the best thing for us to do is to vote in favour of the Scheme. Accept our losses - which includes me - and move on.

Wichetty.