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What is required is a Full and Complete Geological Report(s) that provides all pertinent and relative information related to the Asset including Reserve estimates.
Anything short of that frankly is meaningless.
I understand that obtaining such a complete Report, including the Field work required, is expensive however that is the Business that the Company is in.
I do not understand how there can be any reasonable expectation on anyone s part that something miraculous is going to happen with the Company without the benefit of this most elementary requirement.
It is required for any meaningful new Listing, attracting potential Joint Venture Partners and almost any other Business Plan that may be considered.
Yes, they could use Sarissa Stock to raise some small funding however with no Volume / No Market to speak of I m not sure that short of Management stepping in to fund it themselves as to how that is even possible.
Thank you. I had assumed State Owned Enterprise was what was being referenced.
The SOE site - what does the SOE actually stand for?
Investors, especially Institutional Investors, require Fact. The necessity of proper and complete Geological Data is required.
Did they not chose to take a pass?
There is no Market for the Stock.
I would have thought that a completion of a trade would have occurred at the open not several hours into the trading day and then not in two incredibly small lots. But as you said that's the theory that s out there.
Now a total of 1200 shares! I don t get it!!!!
For the Property Asset to attract potential JV Partners the Company needs to supply complete data on the Asset. A full and complete Geological, Geophysical and Geochemical data portfolio must be provided in order for a prospective partner to analyze.
In spite of some of the work being completed to date this is something that is not yet available. It fact it is very unclear how far along the process the Company is in this part of the endeavour. From what I have read, from the Company Management comments, it seemingly is still very much in the preliminary stage.
I don t know that the idea of flooding the market (if he didn t get his way) was really an option but I do believe that Dan approached Scott and offered his services and with that a Private Placement was attached with the offer (in order to secure a BoD position).
As to what the actual source of these funds are (250K in October 2014) is unknown. Looking at the trading volume from late August to early October it is possible that the source of funds is actually from the privately held stock sold into the Market in order to fund the Private Placement. The volume of sales during this period makes it a distinct possibility.
The Company had lost the services of Ben Ward many months earlier, needed cash and needed someone to act. Dan stepped in to the void.
It is an Adminstration matter that requires the Company to fulfill certain obligations. They need to do it.
IMO the overriding issue for the Company is their need to obtain a Technical Report with a bona fide Reserve estimate. Not only one that is acceptable to the Regulatory Authorities but one that has commercially viable estimates.
If they are able to obtain such a Report many of the ongoing trials and tribulations that the Company is experiencing could be managed assuming they have the experienced personnel to deal with the Business.
A lack of Financial resources and a combination of disinterested / inexperienced Management are likely the route problems that they continue to experience.
There are expectations that the Management is undertaking the necessary steps to resolve all the issues, as some Posters have suggested, however that may be more hope than reality.
I honestly do not understand why the CTO has not been dealt with by the Company. Irrespective of whether it will prevent (or delay) a proposed Niostar listing or not it must simply be an Adminstrative matter that can be dealt with by Management, Company Lawyer and the BCSC.
We have told that the underlying reason for the CTO is minor in nature. If that indeed is the case - fix it!
A Professional Geologist / Engineer, whether an Employee or on Contract, will want to be assured that sufficient funds will be available to pay them for their services. If an Employee the commitment is $100K Plus annually. If on Contract the costs will be similar but that Individual will be providing Services to others.
An Individual joining the Board of Directors, as a non Management Member, will want to ensure that the Asset is viable and that the Management of the Company is well versed in the Operations of the Business. Non Management Board Members normally do not get paid per se but receive Stock Options, Expenses and an Honorarium for their involvement.
If Niostar is going to hire a Professional Manager, with experience in Mining as well as the Public Markets, it will cost well over $100K annually.
To prepare the various Geological Reports, both for the Regulatory Authorities and the actual Reports / Business Plan for Developing the Asset, will cost hundreds of thousands of Dollars.
Additional costs will be charged for Lawyers, Accountants and the various Listing costs / fees.
According to the Niostar Audited Financial Statements they owe several Millions of Dollars to various Contractors, Management Personnel (and / or related) as well as Sarissa Resources.
These are only the costs related to starting up a new Niostar listing.
Cash is required and I don t have a clear vision as to how this Management Group is going to achieve obtaining the money required.
IMO -You are right. Only point - I believe that the OSC Prospectus review takes longer than a month. Suggest three months is a more likely time frame.
Sorry to disappoint but Scott clearly controls Sarissa and it s Sub s. He took over approximately Eight Years ago. Many of the Notes to the Financial Statements (over the years) clearly show Scott s involvement in the structuring of Asset s and Debt (among other aspects).
Dan is in the Company as he promised a Private Placement of $250 K and had an idea how the Company may move forward. That was in September 2014. IMO he does not have any where near a control block (directly or through associated parties) that allows him to control events independently from Scott.
That all said it probably doesn t matter as the Company is having a great deal of difficulty moving forward in achieving the goals set out since September.
The separated Niostar Listing is conceptually a good idea however decisions need to be made as to how they are going to deal with the substantial Niostar debt, obtain the required Geological Reports and how are they going to raise money. Among other important factors.
Scott is Sarissa s Controlling Shareholder. And in fact Sarissa and Niostar s largest Creditor. He is not going anywhere IMO.
Since a relatively recent Company PR stated that they would be adding to the Niostar Board of Directors, opposed to the Sarissa Board, I presume that this is what is being referenced.
If this is the case I would assume that a Niostar Prospectus and Listing Application is close at hand.
Haven t seen any Announcement by Sarissa s Management in this regard however.
Presuming this is the case I m looking forward to reading it as I am interested as to how the Niostar debt is going to be dealt with. Also very curious as to the expected Funding mechanism (Private Placements, IPO, partial debt forgiven ETC) required for Exploration / Development, Business Administration Expenses, Niostar Debt repayment ETC.
It is possible, I suppose, that the Members of the new Niostar Board of Directors will bring with them the several of Millions of Dollars required.
With the lack of completed and verifiable documentation I would be surprised if this were the case however this is what presumably is being thought of by what is being written on this Board.
There is no reason that a seasoned and experienced Mining person would join the Sarissa Board. It is possible that Individuals, with the appropriate background and experience, would join a new Niostar Board but only if it was clear that it would be operating as a going Business concern - not a repeat of Sarissa s history and operating methods. This is assuming that the Asset had merit and that a proper Exploration / Development Plan is being followed. IMO.
IMO it is not about manipulation of the Stock, mysterious shorts or anything else other than the Market is not accepting the Company s narrative or story. The Market has no confidence that the Company Management is able to separate Niostar and make it a viable Public Company Business.
When a Prospectus is completed for a Niostar Listing things may change depending on the Facts presented. Until then nothing of consequence will happen.
My guess is that should Niostar List as a separate Entity much if not all the Liabilities will be converted to Shares in the new Company. Especially since the vast majority of the debt is to Insiders or related in some form to an Insider.
IMO the proposed new Niostar listed Company would be unable to raise enough Capital to extinguish old debt as well as funding for Exploration / Development / Operations costs.
What the Corporate Share structure of a proposed Niostar listing would look like maybe far different that a 35 (sarissa share) to 1 (Niostar share) ratio that was suggested by Sarissa Management.
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Doesn't that strike you as odd?
We don't know who they are, what they did, when they did it, where it was done, or why it was needed.
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It does seem odd that considering the money apparently spent on this Asset (Nemegosenda) very little fact is known. The reference on the Sarissa is of little help (below) in this regard.
Current Exploration Work
Sarissa began exploration again in 2008, and drilled 11 holes in the D-Zone. This work mainly looked at expanding and improving drill hole coverage on the cross-sectional pattern drilled by Dominion Gulf Co. Two holes were drilled in the SE-Zone, with DDH-10-81 showing elevated REE concentrations, and expanding the known extents of niobium mineralization. Currently, a new drill program aims at duplicating historic Gulf Dominion holes in the D-Zone to validate and confirm historic data, to enable the possible use of this data in an updated, comprehensive resource estimate for the D-Zone. This work follows on recommendations by P. Chance in the 2010 NI 43-101 compliant technical report.
Seemingly it is not paid as it is a Liability of the Company - Niostar.
I would have thought that it would have identified the actual Creditors in the Financials however that may not be a requirement of an Audited Financial Statement.
Can not ascertain who General Manager or General Contractor may be. According to Financials they are owed a great deal of money by Niostar. The document does not seemingly identify either party.
James Spence Stewart – Director and Secretary - Sierra Gold Corp.
Mr. Stewart (BA, LLB,QC) is an attorney who has worked 20 years as litigation counsel, 10 years as civil and criminal counsel to the Attorney General of Ontario and Canada; 5 years as Secretary & General Counsel to a large development firm, and was appointed to the Queen’s Counsel.
According to the mentioned Niostar Financial Statements the two Directors are Scott Keevil (President) and Spence Stewart (Director).
According to these same Audited Financial Statements the current Liabilities of Niostar is $5,525,001.00. Cash on hand (or equivalent) is $5710.00.
Is anyone familiar with Spence Stewart?
Hard to argue the logic. It is a problem. However there is not much choice if there is to be a future for the Company and / or it s offspring. They must find a way if there is to be any chance at all.
Really! Must have missed the Announcement. Please post it if you could. Thanks.
Serious questions deserve serious answers but no worries. Life is good.
"New Board of Directors"?
Are you of the opinion that it will be a new Sarissa Board or that of a newly Listed Niostar?
Scott has done a horrible job in his various capacities with the Company. It has been a Penny Stock operation from the start. They may have tried to find various partners / options along the way but it has been eight years with very little to show for their efforts.
If the Asset is real - prove it out and move on.
They need significant funding and an experienced group in order to move forward effectively. Can they do it?
I have a different opinion than you as it relates to the Potential Niostar listing. If they are able to attract an experienced Board of Directors, obtain a significant amount of Funding and operate the new Entity as a going Business concern the drop off in the new potential Listing can be averted.
The Market has to have confidence that the proposed new Company is actually operating as a Real Business and that the expectations / commitments presented can be met. If they operate in this manner it will have a chance. If it turns out to be just a repeat of the Sarissa experience then IMO you are right on the money.
I don t know that they can change their ways but it is at the very least a Business Plan worth exploring.
IMO that is just plain silly !!!!
I assumed that when Company Management were speaking of / referring to having a set of new Directors they were speaking to the new "Niostar" listing opposed to Sarissa.
If they were able to prove out that Asset, List it independently as is suggested, they may be able to attract the expertise required.
I believe that shares can be issued to the maximum authorized as long as any potential obligations are not ignored (ex: options etc).
As for an "Insider" loan it does not have to be secured except by a Note if the Lender is prepared to accept that arrangement.
Scott presumably has the wherewithal to advance a reasonable amount (loan) however it is unclear as to whether Dan has the resources required. It is disturbing that funds originally described as private (Dan) funds were actually funds from a retirement fund (now subject of a lawsuit).
IMO it is a difficult situation for the Company, hence the Shareholders, unless they can secure a financing to take them through the step that the Company has announced they are undertaking.
"The question whether the company owes Scott money or not, you don't know, we don't know. "
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In fact I do know.
According to the Sarissa Resources Financial Statements, for the period ending March 31, 2014, the President of the Company, or Entities controlled by him, were owed close to $750K. In this case the reference is to Scott Keevil.
1) $723,050.00 due to the President of the Company and / or a Company controlled by the President (December 31,2013- $567,000.00)
2) $12,567.00 (December 31, 2013- $8700.00) due to - same info as above #1
3) Management Fees - $8700.00 (2013 - $75,000.00) due to the President
According the March 2014 Financial Statement -
These transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
One further point - Since that date there may have been further funds advanced by Scott. I don t know. That said the above noted advances seem very legitimate.
With a Public Company, especially one that is trying to organize a "reorganization", there is a cash burn rate. What the amount is is fully dependant on what is trying to be accomplished however it is not confined to just drilling costs alone.
Geologists, Lawyers, Service Providers of one sort or another related to the Asset/Property combined with other Business services (such as rent, telephones
etc) need to be paid. While the drilling may be $35 - $85K (which seems extremely low) that only forms part of the expenditures required to move forward.
IMO not only does Sarissa have neophyte Management they have a serious "cash" problem in allowing them to move forward.
A loan to the Company, from an Insider being the most likely source, is the most practical way moving forward. Only Scott knows whether this is practical for him.
It is my opinion of various reasons and options expressed in and / or on a Public Forum.
No one except Dan knows why he took on the responsibilities of being a Officer / Director of a Public Entity except Dan himself. It is just as likely that he took it on because he needed to find a way to replace the 250K due and owing to the Retirement Fund opposed to "Nobody Else" was doing it. Another option is that it was a means to obtaining a future Financial gain either by way of stock options or salary or both.
I don t know but to say he took it on solely because "nobody else" would is in itself not accurate. There are numerous non altruistic reasons for his involvement with Sarissa.
IMO Scott can t be "fired" unless he wants to go. Most importantly he is the controlling individual with Sarissa and secondly the Company owes him, or Entity s he controls, a great deal of money.
As for a qualified / experienced CEO who would, with that type of resume, realistically consider it?
That is fair comment.