Welcome To the WIN!!! St. Elias Mines HUB On AGORACOM
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Message: Another Investors view of the AGM
Date: Sun, 30 Mar 2014 16:11:10 -0700
I'm writing this email to record my complete disappointment and total frustration with the current status of this company St. Elias Mines. The fact that inspite of the long list of deceptive unexplained activities which have resulted in the collapse of the share price, that the CEO and BOD are still able to hold their positions in this so called public company. I'm shocked that the authorities, who are well aware of the history of this entity, have not intervened and suspended this group from all public company activity pending the results of a full investigation of this company.
I unfortunately became an investor into this charade of a company in March, 2010. After attending several presentations hosted by Lori Mclenahan and Jeff Ruskowski at their office and getting swept up in the promotion machine that was carefully, deliberately and deceptively developed, I invested a substantial amount of our life savings over the next two years into this world class opportunity.
Unfortunately for all invested except those who knew of this well managed deception, we lost all of our money inspite of being prepared to receive "great news" for more than 2 years of continued misleading deceptive hype presented consistently by both McClenahan and Ruskowski. There was never a doubt in their story that the Tesoro property in Peru was the next major Gold discovery in the world. Bulk samples and trenching results of multiple ounces per ton were continuously discussed and that more of these results were always about to be released but never were. The hype and "pump" continued and investment savings were sucked in into this vortex of deception from investors like me who believed that we were being told the "truth" of not only what Tesoro held but several other properties in the St Elias operation.
All through this period up to and even after the long awaited drill results were finally released in January of 2012, McClenahan and Ruskowski travelled the world pumping this story and racking up millions of dollars in travel expenses instead of carefully, responsibly, directing these funds into exploration expenses into the suite of properties held in the St Elias company "in the shareholder's best interest".
Negligent mis-management of the properties such as Carmi Moly and the eventual lapse and co-incidental, and convenient change of ownership to some non arms length "staff geologists" have created lots of serious concerns with no complete thorough explanation from McClenahan.
All of this deception that I refer to has been well documented and recorded thankfully by other long term investors and is in the hands of the authorities who are fully investigating the tangled webb of this company.
On Thursday March 27, 2014 I attended the SLI annual general meeting to both listen to and vote on the issues listed in the circular.
The day before this meeting coincidentally, this news release was published by McClenahan that Robert Krause, geologist and one of the SLI Directors that the Tesoro claim had no commercially viable gold amount that could be mined.
2014-03-26 10:29 ET - News Release
Ms. Lori McClenahan reports
ST. ELIAS MINES LTD. - REPORT OF PERUVIAN OPERATIONS
St. Elias Mines Ltd. has received a report reviewing its complete Peruvian operation. This includes reporting on the company's wholly owned subsidiary, the shutdown and layoff of all employees, its compliance with Peruvian corporate laws, and the economic viability of the Tesoro gold project in southwestern Peru.
The company directed Robert Krause, a geologist with extensive international experience as a mine geologist in narrow-vein mining and an independent director of St. Elias, to assist the board in determining the viability of its Peruvian operations.
Mr. Krause concluded that St. Elias, through its wholly owned subsidiary, complied with all Peruvian laws with regards to laying off of personnel, maintaining the company in good standing, paying of all taxes, and maintaining the Company's Peruvian properties in good standing with regards to Peruvian mining laws and taxes.
Mr. Krause has also concluded, through his investigations, that, in his view, the Tesoro Property is not currently economically viable to put into production due to the logistical hurdles, required capital costs, proximity to nearest water source and fundamentally the narrow vein nature of the Tesoro gold veins. The narrow vein nature, the amount of tonnes that can be mined per shift considering the mining costs per tonne, milling costs per tonne (contract milling vs. building a mill) and the potential gross tonnes of this deposit indicate that the Tesoro Gold Project is not economically viable.
The Board of Directors is disappointed by the results of Mr. Krause's review of its Peruvian operations but accepts the interpretation and plans to move the Company forward.
In addition, Mr. Krause recommends that the Company engage the services of a "qualified person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects, to evaluate his investigations and conclusions as he is not a "qualified person" as defined in NI 43-101 and he is a Director of the Company.
The timing of this announcement was of particular interest especially when there was a question posed by a shareholder as to the reason for this 20 for 1 share consolidation vote.
McClenahan is the CEO and one of 3 Directors of this company and "chair person" of the AGM.
The meeting started 1/2 hour late and was completely scripted. Lori read out the issues to be voted upon and the votes were cast by those at the meeting and by proxy by those shareholders unable to attend the meeting. The issues that were voted at the AGM included the following:
To do a 20 for 1 share rollback : Defeated
To change the company name : Defeated
To reduce the number of Directors from 5 down to 3 : Defeated. When McClenahan read out the result of this vote she concluded that the 3 directors would remain for now but the understanding that I have of this vote is that in the future, at her discretion, she could appoint 2 more directors without shareholder approval.
It also became clear by the voting results that many shareholders did not receive the meeting circular package before this important AGM as there were only approximately 30 million votes "against". Many shareholders confirmed this and are very upset that this package was either not mailed at all or mailed to late as they have still yet to receive this package. Last year close to 70 million shares voted by proxy "against" the issues in the circular.
There are close to 120 million shares outstanding and as I understand, McClenahan only holds 1,500 and the directors hold 0 shares.
When asked for the reason for the Share consolidation, Director Krause answered saying that the company is running out of money and that the minimum share price for a Private Placement is $.05/share.
This rollback would dramatically reduce the outstanding shares of the company and result in a $.40/share price that would make the company"much more attractive to raise new capital for it's next venture".
This meeting, chaired by McClenahan was ended abruptly without allowing for any questions or even a motion to nominate two new directors from the concerned shareholders. McClenahan continues to shut down any opportunity for the shareholders to get the honest answers to the obvious questions we have, and did not answer any questions during or after the AGM meeting. I regret that more shareholders were not present this year as in past AGM's, but due to McClenahan's conduct and behavior at this meeting, many would have felt their time and expense incurred to attend this AGM would have been wasted.
She told everyone to email her their questions and she would reply by email. Several shareholders immediately responded that they have sent several emails to McClenahan over the last year and have received no response. She then claimed that she was busy trying to run the company and didn't have time to answer all the emails.
I sat there in dis-belief wondering how McClenahan and her group still consider themselves to be viable as a company let alone to go back to their deceptive practises and attract a new unsuspecting group of investors into their next "pump" charade under a new Company name. When will she and Ruskowski and the other's involved be permanently shut down. When and what will ther consequences be considering the significant real financial losses that the unsuspecting honest shareholders have suffered let alone the next victim group.
We all wait in the hope that the authorities will be able to shut these people down permanently and publicly disclose the full details of this deception to help protect other honest hard working investors from the same outcome as the SLI scam.
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