With us today is Frank C. Smeenk President & Chief Executive Officer of KWG Resources Inc. Mr. Smeenk discusses recent conversation with Noront Resources after proposed acquisition of Cliffs Chromite was announced.
1. Why give away 15 million of Aurelian shares at $4.75 when we don’t need the cash...not to mention the dilution issues, while allowing more voting power to Kinross.
2. Comment on the insider trades before the April 18 mining mandate?
3. Comment on not releasing drill results on 80+ holes? Why didn’t you release holes on satellite targets? Why didn’t you release the results of the deep drill hole?
4. Why are you downplaying the reserve count now after the bid.
5. Why haven’t we received information about the Aerotem results?
6. Why are you giving away the greatest high grade find in the last 20 years when the majors are screaming for reserves? Especially when the new pro-investor mining law ready to be released?
7. Why do this deal in the low season for gold?
8. Why, after the bid is done, do you talk up the risk in Ecuador when a week before the bid in a press release you downplayed it? Which one was a lie?
9. Why, when so many reputable companies/analysts are saying the situation in Ecuador looks
better, do you turn negative? See Otto article.
10. Please comment on the Christopher Ecclestone article.
11. Comment on the 2,000,000 option granted 3 days before the offer was conceived?
12. Why does Tye Burt, the CEO of Kinross, say he has had numerous meetings with senior officials in the Ecuador government and says he is comfortable and there will be no surprises. Do you not think Tye had political and legal assurances that all is in order?
13. There were questionable trading activities in the 20 days prior to the bids. Can you comment on that? Kinross was artificially high and Aurelian artificially low.
14. What was the real reason Dr. Keith Barron resigned from the Board as he was a co-founder of Aurelian?
15. Explain why you removed key data and information from the Aurelian website.
16. Explain why we have a break up fee $42 million for such an inferior offer.
17. Why not release the results of the updated Micon report.
18. Why continue to use such a high ‘lower cut off grade’ of 2.3 g/t. Please tell us how many ounces you would have if you used a 0.5 g/t lower cutoff. Why are the Bonza ounces not included?
19. How does this insitu value compare to other gold juniors sold in the $300+ per oz insitu
20. Why give away the balance of property and gold and copper targets for nothing?
21. Explain to us exactly how you calculate this as a $1.2 b deal
22. How do you sleep at night after making and accepting a deal like this?