Developing Bellechasse-­Timmins Gold Deposit

New Discovery Resulting in a 20KM Mineralized Gold Belt

Free
Message: Conversation with CEO Jim Voisen: Stock splits and Junior Explorers

Good morning:

I think most long time shareholders know Jim: he is the CEO of FMG and UC resources.We talked at length about this 30 to 1 split and folloeing are some important points that Jim made as highlighted in BOLD.

He gave me his permission to share them with you.

.

1] Jim was surprised to hear of this split and said it was "aggressive".

((( ..Jim and I went through a shareholder vote 10 years ago on the same issue with SPQ in the early stages of the ‘ring of fire’. There was more time back than to mobilize shareholders and thus, management lost the vote.(SPQ management was taught that this strategy was dangerous and not necessary in any event) It is important to note that this was for a 10 to 1 split. What our management is proposing is far worse: a 30 to 1 ! )))

.

2] We talked about CEO salary. Jim verified he has not taken a salary with FMG for the past year and not taken one with UC for the past four months.

((( ...I have requested that Frank not draw a salary any longer while we endure the last of this bare market. There are share holders accusing Frank of wanting this 30 to 1 split in order to raise funds for his own salary, whilst he promote GNH after the split, during which time new financing (dilution of shares) and acquisitions would be sought for. I do not spend time dwelling on these unsubstantiated allegations, but it is obvious that the optics are very bad. Lastly on this point, I am absolutely sure that Frank should do what Jim and other CEO’s have done just out of reasonable business sense in such a weak ventures market and that would be: NO More Salary or at least the bare minimum!)))

.

3] We talked about the duty of a CEO to provide a “plain language” summary of current financial status.

((( ...I have asked both Frank and Larry to provide that minimal sum of money which is necessary on an annual basis to keep our claims paid, together with all necessary annual corporate fees. This would be without salaries, which would be itemized separately, if still applicable.I HAVE NOT RECEIVED REPLY. )))

Jim verified that as a CEO he is always able to estimate from ‘the top of his head’ what this figure is approximately. He verified that it is a CEO’s basic duty to provide this information for any shareholder. As well, Jim said that to ask a shareholder to retrieve this basic financial summary by going on SEDAR or through reading complicated financial statements is difficult. Many shareholders would not have the ability to do this meaningfully. (( I am one of them !!! ))

.

4] Jim declared that this was the worst depression of the Ventures Exchange that has ever taken place and that in such environment many juniors will be fatally affected.

((( ...I therefore, among many others, consider it only prudent to seek the most stable circumstances for GNH in such an environment, which starts with cutting back all costs and salaries and concentrating on staying solvent, protecting our company and shareholder investment. (It certainly would not include a 30 to 1 stock split in order to dilute shares and buy more properties.) )))

.

5] Jim verified the vote count process: all those shares which are not voted for are also not considered: The biggest hurdle for shareholders is to get their fellow colleagues out to vote! Often time management have their way because shareholders do not vote.

((( ...Here’s how it works: Of the 140 million shares, if only 10 percent of those shares are voted upon, (14 million) that could be enough to win, as management may have less than that amount at their disposal.Only those shares that are voted upon by both management and shareholders will be counted: it will take only 51% of only these shares to do decide the outcome. Jim lamented that in past scenarios, shareholder turnout was often very low, being less than 5% !!! This is why I have taken the time and effort to encourage everyone to VOTE. )))

PLEASE VOTE!!!

LAST DAY IS THIS WED. ...25TH OF JUNE

.

Lately I have been notified by other shareholders that their voting instructions have finally arrived or have been found! Please note for those who are still looking: the material comes in an ‘insignificant looking’ 6” X 9” white envelope.

In past years, we have received this info in a larger package including the annual report and financial statements: not this year: procedure has changed and if shareholders would like to receive this added info they can check the appropriate box on the voting forms.

So you are looking for a relatively small white envelope: (6 x 9) ….not a big package.

.

Thanks for taking the time to VOTE: ….let’s protect our company and investment together!

….danny

>>

>>

*** Please note that I have tried my best to give a fair an accurate analogy of why this stock split is a bad idea: I simply believe management is making the wrong decision. My comments above represent only my analogy form past experiences with Venture Exchange Junior companies and represents only my opinion of thought and personal feeling on the matter of a stock split and other analogies which I make: I ask shareholders to take the time and really look at this issue. In my view it is the most important issue we have ever faced.

Share
New Message
Please login to post a reply