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My sources say that Marcus left for China again this past Sat.
FFF
Sky High,
I want to start by stating that I am not defending MD. However, you state several things as if they are facts when I think they are just your opinion. Once MD was voted out by the BOD, he had nothing to do with the operations or direction of the company. To claim that he took the company in Chap. 11 is not true. He may have done a lot of things that got them to that point, but he had nothing to do with hiring Watley and filing Chap 11.
Also, you state that MD and MS have leases in their name as an insurance policy. I trust that you can back that up with documentation as that would be a good thing for the courts to know. Please send it to me as I would be most interested in seeing it. If there are backdoor deals like that it would only enhance the shareholders claims that a shareholder equity committee is needed during this Chap. 11 to protect our interests. You can email it to cprksa@gmail.com.
FFF
Viking,
What makes you say that? I have heard nothing to presume that the stock will increase at least 100% to get to triple "0"'s.
Thanks.
FFF
Intel,
I agree with you.
The key right now is to get the valuation raised significantly in the eyes of the judge so that he doesn't make any quick decisions here based on $7M.
Then we will work on getting management to step up and agree with those higher valuations. This is also where having over 50% of the shares accounted for could help us. Because if the BOD doesn't agree with us and they don't support the shareholders, we could remove them.
FFF
Intel,
First, CPRKSA did not say our shares will only be diluted by 5%. That is listed in a filing with the court as part of the $5M - $15M DIP financing. CPRKSA did report that JB said the 5% would be pro-rated based on the full 5% if we get / need the whole $15M. He also said they are creating a prospectus that will be sent out to investors.
However, and this is all just my opinion, I don't think $15M DIP gets the company up, operational and out of Chap. 11. I believe that the $15M is to get things started and then they will look for larger investors (i.e. $80M+) to come in and either buyout the entire company, or heavily invest in exchange for a majority stake in the company, i.e. 60-70% ownership. And in that case the current shareholders would be left with 25-35% ownership of the company. Better then nothing, but not the windfall we were hoping for when we first invested in Copper King Mining.
FFF
CPRKSA@gmail.com
We are doing the same thing with CPRKQ. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52513409
I am heading up a shareholders committee and we will be filing soon for equity status as well. I have learned a lot from following ABWTQ and I have also bought some stock since I started following this thread.
FFF
This letter is to update CPRKQ shareholders on the progress that the CPRK Shareholders Association (CPRKSA) is making to protect our investments in Copper King Mining stock. If you are not yet a member of CPRKSA, you can register your shares with us by going to http://groups.google.com/group/copper-king-shareholders-2010. You will be asked for your name, number of shares, and your contact information. If you have any questions, you can contact us at CPRKSA@gmail.com. To date, CPRKQ shareholders have registered over 2.2B shares of stock with CPRKSA.
CPRKSA has gathered a large amount of historical data that refutes the low company valuations submitted to the courts thus far. A lot of time and effort has gone into this undertaking.
CPRKSA is currently writing a petition to the US Trustee’s office to approve us as a shareholder equity group in the Chap. 11 process. This filing will include all of the valuations that we have amassed. We hope to file this petition within the next 10 days.
The CPRKSA steering committee had a 2 hour conference call with John Bryan (JB) and Charles A. Moskowitz (CAM) this past weekend. JB said he represents all creditor classes and he personally doesn’t think the shareholders are out of the money. That is why he is focused on a value creation strategy. JB shared a lot with us in this call. He will also be providing CPRKSA with a letter giving his support to have us approved as an equity committee and that shows why he feels the shareholders are still in the money. He encouraged the shareholders to be as active as they can to help the company get approval for the value creation strategy vs. a strategy to liquidate assets for the benefit of the secured creditors only.
Here is some relevant information that we obtained during our call with JB and CAM:
-JB has a lot of relevant experience for CPRK, including being the CEO of the 2nd largest geo physical/technical company in the world. Watley was also on the Board of Imetal, a global mining company owned by the Rothschild family. Watley was also on the Board of Koppers Corporation, a major aggregate group based in Pittsburgh.
-They have engaged Tetra Tech, an advanced mining/metallurgy company to oversee the process of getting the mill back up and running. They will use science to determine how best to process the ore, etc.
-The company reached a major milestone last Thursday by getting the power and electric back on so they can fire up the equipment to keep it from falling into a state of disrepair. The startup of the equipment is initially to protect the equipment and for Tetra Tech to evaluate its status. Once they get the DIP loan they will need to add additional equipment, including a leaching facility. They have found that the equipment and facility is in far better shape than anticipated.
-They will soon be applying for the remainder of the DIP loan.
-They think it may be possible to have the mill up within 5-8 months at 2,000 tons per day capacity, with the plan to ramp up to 4,000 tons within 15 months after permitting and building a new leaching facility.
-Good things are happening with Massey and they expect to get the magnetite circuit up and running again.
-They are asking the court to approve a minimum of a $5M spending plan, and up to a $15M spending plan.
-The plan is to get the POR (plan of reorganization) ASAP – get DIP, get the final plan together, and the goal is to have the POR filed in the court within 60 days.
-When asked where the 5% equity for Altus will come from, he said that would have to go into the POR. He said the 5% is based on getting $15M and would be prorated down if they get less in DIP financing. $15M gets us operating, including leaching.
-JB thinks it is possible and likely that we could emerge from Chap. 11 within 6 months.
-When asked if we built the wrong mill: The mill is the right mill, but it is not the right mill for the Hidden Treasure ore that we have been mining. It is the right mill for other ore bodies that we have. Further, we will have to blend ore from different mines to optimize the throughput of the mill.
-When asked about underground mining: The Bawana and Candy B are probably good underground mining candidates. Bawana is not budgeted into the current plan. Candy B is budgeted. The major question on Candy B is can the overhang be profitably heap leached.
-Land Leases: All leases are stayed; we don’t lose any of them. They are filing everything they need with the state. They consider it vital to keep all the leases.
-Management is currently working on a prospectus of the company that they will send out to lots of investors and potential buyers; both strategic and financial. The goal is to get a couple of parties seriously interested in the company and have them bid against each other to get the best deal out of one of them.
-JB met with Mark Dotson (MD) this week. This was their first meeting and JB communicated that it was very productive.
-We asked JB if he would hold another shareholder conference call and he agreed to do this within the next couple of weeks. We will let you know once the date and time are set.
As we get additional information or make progress on our goals, we will post updates on the CPRKSA shareholders website, http://groups.google.com/group/copper-king-shareholders-2010.
Sincerely,
The CPRKSA Steering Committee
Thank you for your constructive comments on my hairstyle. I will make sure that I afford it the same level of consideration as I do your comments on MDMN.
FFF
I guess I must not be as vain as you are, IMO.
FFF
The mill needs to be fired up, IMO. You can't let equipment like that sit idle for too long or it will fall into disrepair.
FFF
CK,
FYI. I am also an unsecured creditor. However, I just noticed this weekend that my address is wrong on the filing and I have not received any info about this group. I will be contating them this week to make sure I am included with that group as well.
FFF
Intel2,
We are shareholders in CPRK, not WUCC. Again, like TBell, I am not dispensing legal advice, but I believe any shareholder issues will only be filed with CPRK.
FFF
XBlade,
I am starting a new list. The amount of shares that people own may have changed dramatically since earlier in the year. So please go to our group and Apply For Membership.
Thanks.
FFF
Intel2,
That is correct. CPRKSA is simply collecting shareholder contact information at this time. We have not asked anyone to commit to any actions and we are not asking for your proxy. We are working to develop a plan that will help to preserve our stock shares and our investments in the Chap. 11 proceedings. So join the group, give us your contact info, and when we need your support for any activities we will inform you about them and give you the chance to opt out if it does not align with your objectives.
To join the shareholders group, go to http://groups.google.com/group/copper-king-shareholders-2010/manage and click on Apply For Membership.
FFF
The CPRK Shareholder's group can be found at:
http://groups.google.com/group/copper-king-shareholders-2010/manage
Click on Apply For Membership.
FFF
Hi all!
I just wanted to give you an update on the CPRKQ shareholders group I am putting together. So far we have 143 people on board representing over 1B shares of stock. (Note, I have not had time to read the IHub postings over the last week, so if you requested to join the group via an IHub post, I did not get it.)
This group is gathering shareholder information in an attempt to influence the Chapter 11 proceedings and make sure that the CPRK shares are not wiped out in this process. If you are interested in joining this shareholder's only group on Google called "Copper King Shareholders 2010", then please go to http://groups.google.com/group/coppe...reholders-2010. informative.
Our next step will probably be to petition the Chap. 11 court to allow a CPRK shareholders committee to participate in the Chap. 11 proceedings. This will allow us to have a say in our future as shareholders. One of the things we need in order to be successful is the backing of a large number of shareholders (the bigger the better). I am inviting you to join the Google Group we created and to add your name, contact info and number of shares to our shareholder list. To do this, go to http://groups.google.com/group/coppe...reholders-2010 and follow the links to input your information and request membership into the group.
FYI. At this point all we are doing is collecting information and giving you access to the group. You are not supporting any initiative here other than gathering information. You are not giving us your proxy. Before we take any actions we will give you the opportunity to let us know if you want to support that action or not.
Thanks.
FFF
EB and DM keep referring to the bylaws as to how they will proceed. However, the wild card here for me is JB. I don't know how he operates.
FF
I have been told that there were never any rights defined for the preferred shares.
FFF
ThunderBell,
I have a copy of the bylaws, but they do not state WUCC or CPRK on them. My understanding is that CPRK never issued their own bylaws, so they are going by the old ones.
FFF
The hatch report is on the CPRKSA shareholder's site. To sign up, go to http://groups.google.com/group/copper-king-shareholders-2010
FFF
CO1,
Nice to see you back! I don't recall receiving an email from you about this or I would have responded.
At this point all we are doing is gathering shareholder contact information. I don't know what the plan should be and I am open to suggestions, and also open to have someone to take the reins on this. I would love to work with you on it and have you be the point man. I am very busy at work and I don't know that I could dedicate the time needed. Again, we are not asking anyone to commit to anything at this time, and sending us your info does not obligate you to anything. Once we have a plan, we will send it out to all the shareholders we have identified and ask if they would like to be a part of that plan. FYI, you can get your information on file with CPRKSA by going to http://groups.google.com/group/copper-king-shareholders-2010. This will also give you access to some other shareholder's ideas on how to proceed and some other relevant documents we have on file.
I can tell you that I have contacted the BOD and requested that they pay for the shareholders committed attorney. They are paying the for the unsecured creditors attorney, so I don't see why we wouldn't get the same treatment. This request was made on Friday to DM and I have not heard back yet.
I will let you know once I hear back from them.
FFF
Another way you can get your information to CPRKSA and join the shareholder movement is to go to http://groups.google.com/group/copper-king-shareholders-2010 and request access to the group.
FFF
Greetings all!
I agree that we as shareholders need to work together and to organize. So I am taking that on.
I am gathering shareholder contact information so that we can all work together and make sure our voice is heard. This will be done through CPRKSA (the CPRK Shareholders Association).
If you would like to join us, a forum has been created to facilitate the collection of names and contact information for shareholders of CPRK stock. Please send an email to cprksa@gmail.com that includes your name, address, phone #, email address, and number of CPRKQ shares owned.
The purpose of the site is to create a data base that allows shareholders to communicate regarding further legal action that may, or may not, need to be taken on behalf of shareholders in the current bankruptcy proceedings involving CPRK.
I hope to hear from you soon.
FFF
He would probably want to be CEO and President again.
CK - that is Marcus Southworth talking right now, not John.
Yes. Just started.
Dial-in number is 712-432-0075 and
access code is 614426
Coppermill,
To address a couple of your questions:
"Why would he keep it (LTF details) a secret from the BOD?"
At this time whether or not MD has LTF lined up is all specuation. If MD really had LTF lined up at the BOD meeting (as he said he did), I don't know why he would not have presented the details. MD has been working on LTF for years and has continually said he is "close". I, for one, hope he pulls a rabbit out of the hat and secures the LTF.
"What would he have to gain by doing so?"
MD was removed as CEO and President by the BOD. Perhaps he felt that by giving up his lending source to the BOD, he gives up his ace in the hole that he can regain control of the company when (and if) he really does bring in the LTF.
"What happens to the BK proceedings if he does have financing?"
My guess is that this would depend on how much financing he receives. If he gets enough (say $100M+) to pay off all debts and fund the mill improvements, SX/EW, etc., then he could withdraw the Chap. 11 filing. Remember, they were not forced into bankruptcy, they voluntarily filed and they can withdraw it at any time. The risk of withdrawing it, if you can't pay off all the creditors, is that they could then foreclose on you and force you back into bankruptcy. If the LTF is not enough to pay off all the creditors in full, but could make a big dent in what is owed to them, then he may be able to get their agreement for more time and could then withdraw the Chap. 11 filing without fear of being forced back into bankruptcy.
The other thing about a potential LTF is "what are the terms?". If it is just a loan to be paid back with interest, then there would not be any further dilution to the shareholders. If it requires some equity stake in the company, then the shareholders will be diluted by x%, based on the terms of the LTF. My guess is that anything the current BOD puts together will, at a minimum, dilute the shareholders, and at a maximum, wipe us out (which I believe is unlikely for the same reasons several others have been posting recently). So what we should all probably be praying for is that MD has a large LTF deal lined up that will not further dilute the shares!
"I don't believe MD has been sitting around doing nothing for 4 months."
I agree.
"Could this be going on behind the scenes?"
Yes it could.
FFF
No. He is working hard to get a financing package together.
FFF
I can manage getting support for our cause. However, I am not a lawyer and I have no idea what the procedure here is or even what I should be asking for. If there is a lawyer out there who would want to partner up with me on this, I would be all for it. Dcragun???
FFF
PW,
This is scary. We agree on something.
Let's see what happens Tuesday. After that call, the shareholders may decide that we need to group together and take action. But until we have any understanding of the direction, I wouldn't know what actions to start taking. I don't know who has sold or bought shares since 3 months ago, but I have the email addresses for shareholders that represented 1B shares at that time. So that would be a good place to start for getting a shareholder movement put together - if it is necessary.
FFF
Svalente,
One of the main purposes of filing Chapter 11 is to shed and restructure debt, not add to it. If they are going to go about cancelling out the current shares, I would almost guarantee that they will not include a provision to pay us for them later. Now don't get me wrong, I would love a provision like that, I just don't believe it would ever happen.
FFF
Here is a very telling article on John Bryan. I assume this is the same John Bryan that is now CEO of CPRK.
http://goliath.ecnext.com/coms2/gi_0199-8525325/FERGIE-JOHN-BRYAN-AND-A.html
FFF
I tried to email crpkinvestors@yahoo.com to find out what they were doing and got an error message:
Your message did not reach some or all of the intended recipients.
Subject: CPRK
Sent: 5/21/2010 1:53 PM
The following recipient(s) could not be reached:
crpkinvestors@yahoo.com on 5/21/2010 1:53 PM
There was a SMTP communication problem with the recipient's email server. Please contact your system administrator.
<mailserver.myco.local #5.5.0 smtp;554 delivery error: dd This user doesn't have a yahoo.com account (crpkinvestors@yahoo.com) [0] - mta1085.mail.sk1.yahoo.com>
T-Bell,
2 corrections on your post:
#4. I heard that the filing was done in Nevada, not Utah. I believe that Nevada is more favorable for businesses.
#5. I do not believe that McMullin is a large shareholder. But the other 3 are large shareholders, or at least they used to be. I don't know whether or not they have pledged any of their shares as collateral against loans.
And I totally agree with you that this is a move that had to be made. It may or may not turn out well for us shareholders, but I think it had to be done.
FFF
What lender would want to loan money to a company who's creditors were about to force them into bankruptcy? What lender would want to loan money to a company who has a lawsuit against them that could bring down the company?
Now, if that company were to file Chapter 11 and be protected from all of that, might you then be interested in loaning them money?
Just my thoughts on this. The filing sucks and it certainly increases the chances of us losing everything. But there is also a ray of hope that this will open a window in which some lenders / companies are now interested in working with CPRK.
FFF
Will this be a class action suit?
FFF
No, management does not control the majority of the stock. I believe they have less than 1B shares.
FFF
You are incorrect PW. Shareholders do have voting rights. I have it in writing from a BOD member that the Pink Sheet posting is inaccurate.
Also, here is a clip from the CPRK By-Laws:
Section 8 - Voting
At each meeting of the Shareholders, every Shareholder shall be entitled to vote in person or by his duly authorized proxy appointed by instrument in writing subscribed by such Shareholder. Such Shareholder shall have one (1) vote for each share of stock standing registered in his or her or its name on the books of the corporation, ten (10) days preceding the day of such meeting.
FFF