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It is definitely the same guy, but personally I could care less who's or how many toes he has sucked if he helps get us out of this mess. Just sayin....
Although the "exclusive" included direct quotes and a new photo of Bryan, Fergie's ex claims that he received "absolutely nothing" from the tabloid. Now a partner in a Los Angeles-based merchant banking and venture capital company called The Watley Group, Bryan did concede that he had spoken to Rupert Murdoch's News International?which publishes The News of the World?after last month's announcement that the Yorks would divorce. "I gave them a large number of quotes, which were, in my mind, for [Murdoch's] Sunday Times," he said, hinting that the material (which he says that he provided gratis) was then diverted to the tabloid. "I regret that those things are published," he said.
http://www.people.com/people/archive/article/0,,20141281,00.html
Zecco just changed my shares to CPRKQ, after telling me it would take 3-5 days, I followed up with another email and call telling them that Scottrade was already changed and they needed to get their butts in gear. Not sure if I had anything to do with it, but they changed it within a few minutes. Thanks to any of you guys who helped pressure them.
Good morning guys, If any of ya'll have CPRK shares with Zecco, please call/email them to put pressure on them to make the change to CPRKQ Right now you can buy CPRKQ, but cant sell CPRK. Makes trading/averaging down very hard.
1. Press Release Tuesday, May 19, 2010 regarding Chapter 11 filing and new Chief Executive Officer
http://www.copperkingwesternutahminingrestructure.com/Copper%20King%20Mining%20Corporat...pdf
2. Copper King Mining Corporation Petition
http://www.copperkingwesternutahminingrestructure.com/Dkt%201%20Copper%20King%20Petition.pdf
3. Western Utah Copper Company Petition
http://www.copperkingwesternutahminingrestructure.com/Dkt%201%20Western%20Utah%20Petition.pdf
4. Copper King Mining Corporation Notice of Meeting of Creditors and Deadlines
http://www.copperkingwesternutahminingrestructure.com/Dkt%203%20Copper%20King%20341%20notice.pdf
5. Western Utah Copper Comapany Notice of Meeting of Creditors and Deadlines
http://www.copperkingwesternutahminingrestructure.com/Dkt%203%20Western%20Utah%20341%20notice.pdf
6. Copper King Mining Corporation Deficiency Notice
http://www.copperkingwesternutahminingrestructure.com/Dkt%205%20Copper%20King%20Deficiency%20Notice.pdf
7. Western Utah Copper Comapany Deficiency Notice
http://www.copperkingwesternutahminingrestructure.com/Dkt%205%20Western%20Utah%20Deficiency%20Notice.pdf
Lots going on
I am not an apologist for MS,and I cant speak for Sleep, but in rereading the email, I dont really see anything wrong with it. Obviously he could not disclose the BK, that would be insider information, remember, the wolves were at the door, perhaps MS believes that Ch 11 is the only hope to retain any shareholder value and therefore it is indeed "in the best interests of the shareholders" The word "emerge" is telling in hindsight, and he did hedge with "from my perspective" Just my opinion but I can't really find any fault with it.
James, you are a good man. I feel strengthened in my role here at Copper King. Your prayers do make a difference. I am trying to do my very best in representing the company and the best interests of the shareholders. We have some challenging and difficult times ahead but from my perspective, we will emerge strong and successful. Keep your head up, I do!
The domain http://www.copperkingwesternutahminingrestructure.com/
is owned by Watley
Registrant:
The Watley Group, LLC
Registered through: GoDaddy.com, Inc. (http://www.godaddy.com)
Domain Name: COPPERKINGWESTERNUTAHMININGRESTRUCTURE.COM
John, Thanks for all your efforts with the "Just Show Up" campaign, canceling my reservations.
I ended up getting filled on just over 4 million today at .0012 It took all day which surprised me based on the massive volume. It worked out really well for me last time I bought this low. (actually the lowest I bought in the past was .0014) It only takes a few ticks up from this level to have large % gains. I, like all of you folks are uncertain about the future of CPRK, but the trading has been really good as we take the bumpy ride. GLTA
I have been trying to buy at .0012 the last few hours, but have not got filled yet, I talked to someone who did get filled, but he placed his order a few weeks back. Have any of you guys placed an order today at .0012 and been filled, or am I out of luck. Seems to be a lot of support there.
Sounds reasonable Candy, I dont think my checkbook is big enough anyhow, was just playing along with PW. I am betting that MS and maybe MD pull us back from the brink one more time. Look forward to meeting all you folks in June.
Cheers
Chuck
The weekend of June 11th 12th, I am planning on "just showing up" hopefully we have something left by then. They have always managed to pull a rabbit out of the hat at the last moment in the past, perhaps they can do it again.
26,167,551 shares sold short out of 77,728,978 0r 33.7%
Agreed, It is nice that they laid out all their problems, we never would have seen a PR like that under MD
Lets keep in mind that this is initial speculation without actually seeing any documents or filings. Maybe if we are lucky we will get a PR this week with CPRK's point of view of what happened, unless their lawyer holds them back from commenting. (very possible), but would go a long way to fulfilling the commitment of greater transparency. If we dont hear anything I suspect the pps will continue to drift down.
And another follow up from Scott68 who is a poster here as well, but in Vegas at the moment
Ok, still in Vegas (and forgot to bring my Pacer login info, so I can't actually go and look at the court docs) ... but ... this doesn't make any sense to me.
If the court granted PN's motion to compel discovery, then it should be PN that has the opportunity to request attorney's fees, with CPRK getting an opportunity to respond.
It doesn't make sense that PN would win their motion and yet CPRK get the opportunity to request attorney's fees.
So, if CPRK actually does have the opportunity to request attorney's fees for responding to todays motion by PN, then more went on in today's hearing than we are currently aware of.
And, I didn't see anything in Stang's post commenting on PNs request for injunctive relief requiring CPRK to stop production and/or post some kind of royalty bond.
(That's NOT meant to be a shot at Stang ... it's just a comment on my understanding that there were other issues to be decided in today's hearing besides just the motion to compel discovery and we haven't heard how those issues were resolved yet.)
I'll be back in my office tomorrow afternoon (which sucks) and I'll have a chance to review some of this stuff tomorrow (late night) and I'll post more thoughts then ... or ... if people post more info and I'm sober enough later on tonight to take a look at it, I'll do that also.
Back to the poker tables!
Here are some follow up posts to Stangs
From Trants
Well this does not read right.
I would have to write it this way for it to make sense under procedural law.
It sounds more like;
Nevada Silver (pla)
was served the motion "to compel discovery"
BY:
WUCC (dft) and it was (granted).
And WUCC now has 14 days to file for attorney's fees (?), perhaps because NS failed to appear?????
And now NS "having lost the challenge" and was so ordered to allow discovery and produce "X" has an additional 14 days to respond or comply.
Strange read, not the procedure because either side can request discovery, even in Utah if I am not mistaken, but the attorneys fees at this point almost sounds out of place unless someone failed to respond, was by contract, or was unusual in some unknown way!
Hey Scott68, Let's zing this off the side of your Brain, can you put a scenario together other than this??
Can't wait for the actual doc's now!
Thanks for the info Marc.
4,875,985 sold short out of 7,578,283 or 64.3% today
If you check the Beaver County records you will find that all claims were transferred to CPRK or WUCC with quit claim deeds, the dates to check are May 5th and 7th ,2009, Jan 20,2009 Dec 29,2008
I believe there are close to 400 claims
lol, I sent you a few emails with the pdf's, maybe you can figure out a way to post them, the financial one has me whupped.
I cant get the other PDF with their finance information to copy correctly. A few things I found interesting in it, it shows all their accounts payable as of 10/31/09 including $7422 to Milford Memorial Hospital for drug tests. lol and $84205 to Terra Tech for explosives.
Sr and Jr Mortgage debt of $56,385,333
other LT debt and obligations $13,385,033
Basically all the information in detail that we have been begging for forever, it details interest rates, and how the debt is secured,(some by shares, some by equipment, etc)
It shows that our new CEO has loaned them 300K and 400K from Eric Barlow and 800K in loans to the company against MD's stock and 266K from Dave McMullin. Looks like these guys really believe in the company.
many thanks to FFF for the info, and also to a certain unnamed sweet lady.
Thanks Shiznit,
This is from the bottom of the first PDF, it states their "goals"
This funding helps the Company to achieve a number of other
important goals including:
1. Stabilizing relationships with vendors so that Management can focus on operations,
2. Position the Company for a refinance to pay off its lenders,
3. lnvest in the auditing and accounting work which will permit the Copper to file a l0-K and become a fully reporting
company, and
4. Greatly enhance its stock market valuation for the benefit of all investors.
Stock Market Equity Valuation
A stock market comparable analysis was undertaken this past summer and revealed that copper and similar public
mining companies have market equity value multiples of 5.8 to 7.4 EBITDA. Copper King could conservatively achieve
$3 to $4 million in monthly operational profits as discussed in the projections presented earlier in this document ($36 to
$48 million per year) and the Company's equity market value could reach well over $200 million.
Then, with increased
potential coming from the addition of an SXEW facility and additional exploratory drilling, the equity value of the
company would rise even more. The current market value is less than $40 million. Part of the plan as the Company
reaches stable positive cash flow is to complete the required accounting and legal work to enable Copper King to
become a fully reporting company. Then it could at least trade on the Bulletin Board (removing the stigma of Pink
Sheets) and later advance to a listing on the NYSE or NASDAQ. These events should further enhance liquidity and the
valuation of its shares.
Here is some of the info, I have been messing with it trying to copy/paste the pdf, Ally take this down when you get the actual pdf's posted, for some reason some of the words are mixed up and/or missing
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 1 of 15
A STRATE,GIC PL,{N SUMMÂRY OF
COPPER KII'{G MINING CORPOR,\TION
IN CLUDING .ITS PRIN CIP,{L SLÍBSIDI,{RY, ÌTESTERN UTAH CO PPER COMPÂNY
November 11,2009
8LC005913
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 2 of 15
l. Purpose of this Plan
This Strategic Plan Summary, including the referenced exhibits, is intended to inform investors and lien holders of:
I . The current financial and operational status of the Company,
2. What operational improvements and initiatives should be taken to bring the Company to solid profìtability,
3. How new capital plays a key role in this move to profitability' and
4. What the valuation of the Company could be with these initiatives and improved results.
ll. Summary of Kev Points and Conclusions
1. The project has vast resources of ore and now a flotation mill capable of immediately generating positive_cash flow.
nn åOOlt¡onat leaching process that can be installed in less than 4 weeks at a cost of approximately $375,000 could
bring the cash flow to over $4 million per month in 5 to 6 months.
2. However, the Company is strapped for cash and may not be able to continue its business without an immediate
additional cash infusion. Furthermore, some vendors are getting particularly aggressive on collection and mighttat<e
steps that would shut down the mill.
3. Copper King needs cash urgently for the following uses:
a. $90,000 - lmmediate purchase of key reagents that will enable the mill to again produce concentrate.
production has been signifìcantly down due to lack of a proprietary reagent critical to the Company's
operations. This produCt must be paid for in advance and has a 30 day lead time to receive shipment.
þ. $260,000 - lnvestment to dramatically improve the mill flotation process by purchasing-and installing 2 banks
of 6 Gardner-Denver mechanical flotátion cells. Also included in this budget are funds for some critical spare
equipment.
8LC005914
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 3 of 15
c. $375,000 - lnvestment to bring a copper precipitation facility up and running in less than 4 weeks. The
Company has identified, and is testing, a new process of "copper precipitation" (otherwise known as "copper
ceméntaiion'¡. Copper precipitation is a leaching process yet smaller and simpler than a full Ð(/EW facility.
This new process'c'ould' Oring the Company from $750,000 to over $2 million in net incremental cash flow in
addition to the flotation process.
d. $1 million - Payments to vendors would both assure continuing sources of supply from key vendors and buy
time with others while payment programs are developed.
4. Other key information:
a. This operation is a high fixed cost business but with extraordinary proft leverage. The baseline expenses are
betwden $ZO0,OOO anO $8OO,OOO per month to process 1,500 tons per day. However, fhe Company can
process 3,375 tons per day at a total Company cost of only $1,100,000. Thus, a225% increase in production
can be achieved wit'h onty ã Seø increase in iost. Ihrs is profit teverage and represents a signifrcant
opportunity for the Company to achieve high cash flow and valuation'
b. The Company began producing concentrate in August and achieved a break-even point for about 10 days total
in Augusi and September. This is at the 20 to 24 tons of concentrate level per day.
c. However, the Company has found the varying types of mineralogy in the feed ore a challenge in reaching an
optimum reagent ècnéme. And, the Comþany'é'snodage of cash has caused a dramatic production decline as
a result of aciually running out of certain key'proprietary reagents that must be paid for in cash and may
requires a 30 day lead time to arrive at Copper King.
d. As a resutt, production has fallen to an average of less than 10 tons of concentrate per day generating only
$4OO,OO0 oi cash per month, less than half of the operational break-even point. The Company feels it can
restore profìtable levels of production within 2 or 3 days of receiving these reagents-
5. The stock market value of the Company's equity is now only $40 million, but should be fairly valued at least $'150 to
$200 million with normal and customary valuatíon metrics assuming higher production levels' lf the company is
successful in generating $4 million in oþerating income per month, which is entirely possible with the cash infusions
discussed aþove, thesJequity numbers can realistically be achieved in the actual market trading values.
8LC005915
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 4 of 15
ilr. Short Term Assets and Liabilities
The Company's current assets are primarily concentrate inventory on the ground with an estimated value of $460,701
and a group of reconciliation payments due from Sempra Metals, aggregating to about $35,000 in such payments. There
is essentially no cash on hand.
The Company's current liabilities amount to a total of $3,514,584 and are owed to a wide variety of vendors, resulting in
a negat¡ve wórking capital balance of about $3 million. Approximately 50% of 'old payables' relate to f nal construction
and óutfitting of tné mill. ln addition, 10% of the old payables were incurred in expanding the lab to meet minimal testing
requirementé. The remainder of the $3.5 million is owed to vendors for goods and services purchased over the past
several months. (See Exhibit 1).
The details of the accounts payable as of October 31, 2009 are shown on Exhibit 2.
Few vendors (except for vital reagent manufacturers) will be paid off in full at the closing of a funding. The specific use of
proceeds relaiing to this A/P list is discussed later in this document. However, some vendors have very powerful
þsitions. lf they act to remove equipment on site, or fail to continue to provide services, then the mill and the Company
ôould þe shut down. There have been some recent threats of this nature against the Company that could result in real
problems, if not promptly and adequately addressed.
Lono Term Debt and Other Oblioations
Copper King now has a total of $53,491,999 in total long term debt secured by long !e11_assets such as mining claims
anit ieal estãte. There is $13,385,033 in other long term obligations, including $1,025,000 in lease obligations owed to
Republic Bank. (See Exhibit 3). The first lien holders are the largest creditors of the company as a result of substantial
penalties and inierest. This has caused an increase in this debt from an initial investment principal of about $7.6 million
io currently over $30 million, a 4X increase in 2.9 years. (This is a 617o return per annum.)
Curren¡y all debt, except Massey and Comstock, is under some type of forbearance. Strategic Capital has recently
stepped in and paid $2OO,OOO to Republic Bank on an equipment lease and has agreed to pay.off the remaining
Sf ,'O2S,OOO ovei the next 90 days. Naturally, Strategic Capital will step into the same l¡en positions as Republic has had.
8LC005916
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 5 of 15
Massey's recourse is only against assets that are of limited value to the Company. These assets are totally separate
from those secured by other debts of the Company. Since Massey is receiving magnetite shipments we do not think they
will be taking any actions.
V. Production Summarv
The Company began producing copper concentrate for sale since August þut has had an inconsistent production record
ever since. Exhibit 4 summarizes the total production and its estimated value during the period August - October.
The daily production report (Exhibit 5) shows a good ramp up to over 20 tons of concentrate per day by the third week of
August. This is approximately one truck load and yields the Company about $35,000 to $45,000 per load. At this pace
the Company was on a break-even daily run rate.
By mid-September the Company's production became inconsistent due to ineffectiveness of the reagent scheme pushed
on Copper King by a reagent manufacturer (highlighted in green on Exhibit 5) and, more importantly, due to the delay in
ctosin! ihe fmÞirè financing. This delay came as a result of a lengthy inter-creditor process and the Company's inability
to purchase the key proprietary reagents.
Since then, concentrate production has fallen and today the Company is generating only about 40% of the amount
required for operational cash flow break-even.
Exhibit 6 summarizes the amount of concentrate tons shipped and associated billings and payments. The Company
receives approximately 60% of the estimated total value of the shipment at the time a truck leaves Milford and then
receives an'approximate 30% of the payment within 1 week after the shipment. (Some reconciliation payments follow
later.)
Shipments to the smelter in Arizona designated by Sempra were stopped in mid-October as a result of a Sempra
requirement to confirm the viability of truck load shlpments and maximum moisture content. Shipments are expected to
resume this week, but possibly to another buyer with respect to this lot. The concentrate shipped will be from the
inventory currently on the ground (not yet shipped)with an estimated value of about $466,000.
8LC005917
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 6 of 15
Vl. Ooerational lmprovements
The Company has researched and specified three important technical approaches that can not only restore, but well
exceed operational break-even from the flotation mill.
L Flotation - Reaoents. lt is critical that the Company expend a minimum of $90,000 immediately to pay overdue
reaSent bills anã then build a reasonable inventory of the proprietary reagents that the mill requires. Lack of these
realents is the principal reason that production has fallen off since mid-September. The Company believes the
r""ðipt and use'of thèse reagents wiil restore production back to the 20 to 24 ton level within 2 to 3 days of receiving
this much-needed Product.
2. Flotation - lnstall New Equipment. The Company has done a thorough analysis to prove that the installation of 2
@ermechanica-|flotationcellswouldgreatlyimproveproductionbeyondthe.results
exþected from the correct reagent scheme as discussed above. These units will be used to further clean and
concentrate metal content to jreatly improve the flotation proces yield. The total cost of purchasing and installing
these units are about $190,000.
3. lmplement Cooper Precioitation Facilitv. The Company is completing tests that show a new process can be profitably
fthemilltoproducesignifcantamountsofprecipitatedcopper,alsoknownas
the "copper cementationiproiess. The implementation of this process will cost approximately $375,000 and can þe
expectåå to yield up over bZ m¡tl¡on in incremental cash flow per month. A complete description of the copper
precipitation process is provided in the following section.
Vll. Copoer Precipitation (Cementation)
The Company has identified and has been testing an additional processing approach øalled "Copper Precipitation" which
is also known as "copfèr Cementation." CopperÞrecipitation (or cementation) is a well- known process which includes
leaching. This process produces a brown powder-like ðubstance that is 90% copper. Management considered this
procesJ in the past, but did not adopt due to the shortage and expense of sulfuric acid. Given the lower price of coppe.r
ät tne t¡me, this process was considered not to be as cõst efficient as the SXEW process or other, more effective, and
flotation processes. The project plan for Copper King has always been.to have a leaching process to maximize the yield
from the Company's ores. pue tô tne varied mineralogy at the Copper King mining properties, it has always been
8LC005918
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 7 of 15
expected that flotation would gain 50% combined recovery of oxide and,sulf-de copper, while 80to 9070 of the rest of the
poþper would be recovered in a leaching process such as an SX/EW plant (Solvent Extraction Electro Wning).
However, the Company does not have the financial capability at present or the time to imrnediately establish an S)IEW
facility. Thus, pursuing-a Copper Precipitation facility that.can be implemented in less than 4 weeks afterfunding at a'
feasonaOle cost mAkes gooå'"en"e. Cbppet Precipítation iS moie expenSÌve Þêr pound for plocessing cöst ($.9O),than
SX/EW ($.6S), Out is stitt nìgnty profitable, especially considering the much lower upfront investment As the Company
achieves a re-f nancing or strong positive cash floW S)IEW will again be actively considered'
The Copper Precipitation process is shown in Figure 1 and summarized in the following steps:
TON ORE PER DAY
1. Stãrt the pDc€ss 6¡hB Ta¡lin85 Cle, {sotld oride Cul
2- Acld L?athl¡8(sulfudêåcld dfuælretcu fþm hs OxldÊ Orel
3. Novel ConlinÈþüs Cemef,tãtion Ptocegs , Cu dépositþn
d. PLs. cu Cemdnt Sioaràtion (sÉlid Uqúid s€paràtion)
8LC005919
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 8 of 15
1. Tailings and low grade ore (see Point I on Figure 1 ) are delivered to leaching vats where it is leached with sulfuric
aciO 1ã¡. The resúft of this tàaching is copper-rich sôlution (aka PLS pregnant leached solution). This solution (PLS) ¡s
recoveied at or near the bottom of each leaching solutions vessel and then is...
2. pumped and re-circulated to the cement reactor via transfer box and then back into the leaching circuit, and then back
to the reactor to create a continued loop of circulating PLS, and next."
3. A basket containing iron scrap and shavings (3) is lowered into a cementation reactor. This reactor is a small vat with
a conical bottom. iopper is precipitated að a iesult of these chemical reactions. This process allows for copper to
replace the iron anO bêðomeis a iranular metallic copper material. This material settles down and is sieved out of the
reactor cone and then pumped into a sedimentation tank (4) where '
4. The materials which settle to the deep end of the sediment tank are dewatered, and the solution is pumped back into
the circuit for re-use (4)...
5. The resulting copper in a brown powdered form is taken out of the sedimentation tank (4) and shipped to market This
form of copõer ié'equivalent to very high grade concentrate void of any precious metals'
The economics of this approach are verv Þowerful. Management believes that '1 ,000 tons of tailings and lower grade ore
seachday.rhistranslates^t"^141-01?:i11"-.91"_"^?p:l:J,"-1Îi1t::,".
;f ïiöi;; õiij i; üË ümþany' after ati tabor, material aîd ch"rse". At 28.33 production daYs.per month, this would
.^..|f L^ i^ ^¡¡i+¡^¡
result in an i
to cash flows from flotation.
The cosfs fo irnplernent thls preciÞitation prooram are a total of $375.000 or less. This facility could be up and running in
lessthan4weeks'nowerkandisexpectedtoproduce2tonsof
precipitated copper per day by novemOer 2ti at a yield oÍ 75o/o copper. This production 9lt*o tons.would thus translate
to a net $g,134 per day or $230,463 of immediate cash flow per mònth to Copper King- (The monthly amount is based
on 28.33 production days per month')
The costs to get the complete facility up and running are as follovt¡s. Many of these estimates have been developed with
actual quotes for specific products and services'
8LC005920
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 9 of 15
1. $80,000 to purchase stainless steel valves and pipe'
2. $210,000 to purchase or build vats for leaching tails and ore,
3. $60.000 in associated other costs, and
4. $20,000 in contingencies.
The costs to run the copper precipitation program, assuming 1,000 tons per day are:
1. $.51 per pound for acid,
2. $.16 per pound for scraP iron, and
3. $.23 per pound for labor and equipment.
The foilowing is a technicaldlscusslon of the copper precipitation process. lt is optional reading-
Copper precipitation is simple in principle and is nearly an automatic ope.ration and usually requires a minimum of
human attention. f luctuaiiJni ¡n õòÈpér content of soiutions do not affèct the etficiency of the process. This process also
uses relatively inexpensive scrap metals (such as shredded cans) and produces a high-grade copper in powder form'
precipitation of cement copper requires only a source of copper-rich solution (Pregnant Leached Solutions), suitable
pipe io convey it, and preärfitation láunoers containing the ðórap iron. Usually less tha.n an hour of contact with the scrap
irôn suffices tó piecipiiate virtuatty all dissolved coppei. Periodiòally, more scrap meta! !9 added.to the launders to
repface the maier¡alïnat is èaten'away. The preciiiiateo copper slñts to the bottom of the launders as a sludgy mass of
fine particles. At intervals, it is removed, dried, and shipped'to the smelter. Copper precìpitates produced vary from 75 to
95 percent copper, u""oøinjto wnich proceoure is use'd. The Pregnant Leached Solution (copper-rich water) will be
ã*ãtéO from leäching tne iãiings from turrent flotation operations ãs well as ore added as required to make a richer
PLS.
The formation of copper precipitate for sale hinges on the relative position of copper to iron or zinc.in the Electromotive
Force series of elements. This is a list of metals in the order of their natural electromotive activity. A given metal, placed
in a solution of another metal below it on the electromotive list, will go into the solution causing the previously dissolved
8LC005921
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 10 of 15
metal to precipitate in metallic form. Copper is belowzinc and iron in this series, so these metals go into solutionwhile
metallic óoppér is deposited from copper solutions. Lead, on the other hand, is below copper and is not affected in
copper solutions. lron is used to precip¡tate copper because it is abundant and inexpensive as scrap.
Vlll. Monthly Operational Cost bv Function
The copper mining and production business is inherently a high fxed cost business that yields a very high "operaiional
profit leverage." lñ other words, once a group of fixed costs are met, profits will rise much faster than variable costs'
One example of profit leverage can be seen at the mill itself. The mill only takes 7 people.per siift to run and these costs
are the same whetherthe mill produces 25 tons of copper concentrate per 24 hour periqd-or 10 tons ofcopper
concentrate per day. But 25 tohs is worth a net revenue to the Company of about $920,725 (past break-even) while l0
tons of concentrate is worth only $368,290. This daily improvement would have a huge cumulative effect to positive cash
flow within 30 days from implementation.
The following are the relative costs and revenues associated with three targets, flotation only, production levels (See
Exhibit 7):
1. Level One - 1,S00 tons processed per day has a total company cost of $794,632 per month and yields operational
negative cash flow of ($148,630).
2. Level Two -2,OOO tons processed per day has a total company cost of$935,170 per month and this cost level can
proOuce positive cash flowfrom operations of $524,073 per month.
3. Level Three - 3,375 tons processed per day has a total company cost of $ $1,108,006 per month and yields positive
cash flow from operations of $1 ,697,258 per month.
Conclusion: As production goes from 1,500 tons per day to 3,375 per day (225o/o increase), costs only go up by
$313,374 or 39To. This is high profit leverage.
Copper King's cost structure is divided into 4 main categories as shown in Exhibit 7: Milling, Mining, Drilling ?4-- ^^^
Oeãiogy, OÉice/Overhead and Professional Fees. The lotal of these categories has recently been a target of $877,983
10
8LC005922
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 11 of 15
per month, but this level is being reduced to $794,632. Milling is by far the largest category as shown below. Drilling and
geology expense includes both êxploration and development drilling. Development drilling is for obtaining information
iequ¡reO to design the next mine pits, and obtain information necessary to process ore. Development drilling comprises
about 7$80% of the total cost in this category.
Milling - $385,922
Mining - $189,529
Drilling and Geology - $78,826
Office and General Overhead - $76,020
Professional Fees - $64.335
Total = $794,632
Some lenders to the Company have suggested that the $268,355 in mining and drilling/geology be eliminated entirely
until profitability can be aifr¡eúeO. WhilJ'-intellectually appealing," the Company believes this approach is simply not
possible in any meaningful degree.
Here are some limitations to further reductions, or elimination, of mining and drilling expenses.
1. By agreement, Copper King must mine and process at least 1,000 tons of ore from Nevada Star properties or lose this
leasehold.
2. The mill desperately needs ore. There is only 50,000 tons of ore stockpiled and this is only a 6+ weeks'supply at
1,500 tons per day.
3. proving out resources by continual drilling is critical to assuring long term ore supply and thus a refìnance of the entire
capital-structure. For exámple, the Hiddeñ Treasure mine will be completely mined out in less than 7 months. Actions
ne'ed to be put in place at other locations, such as the Copper Ranch/Road Deposit to ensure that ore will be available
to produce the cash flow the Company will need for sustained growth.
ln short, the company næds funds to produce more copper concentrate. No amount of cost cutbaclrs ensures
profitabitity, only production can ensure profitability.
1l
8LC005923
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 12 of 15
Proiections - \Mth and Without Copper Precipitation
For ease in calculating, the month of December, 2009 should be considered "Month One" after a funding with
Empire is completd.
The December results are dependent on a swift financing closing so the Company can obtaín critical supplies,
such as proprietary reagents.
Production of copper concentrate and precipitated copper are the keys to the projections. lf the Company can produce,
the cash flovr¡s will be more than sufficient to honor payables, lenders and create a re-financing opportunity.
It all comes down to production.
Exhibits I shov¡s projections for the Company with the flotation process only and Exhibit 9 shoue the results with both
flotation and copper precipitation.
The first part of these two projection spreadsheets consist of computations that show the number of tons processed, the
expected'yields (percent recovery of metals) and revenues received based on the Company's contract with Sempra.
1. Flotation Onlv Results. (See Exhibit 8.)
Obviously the more tons processed, and the higher the yields, then higher the revenues. ln this case we have
conservaiively estimated the daily production to start at processing '1,500 tons of feed ore for December, January,
and February (while production ið òptimized with the reagents), then up to 2,000 tons per day for February, March
and April. The'peak þroduction rate for these projections is the processing of 3,375 tons of feed ore per day for May'
Recovery rates start'at 22o/oin November and growto 27%by May. These rates have been achieved in the past and
should be achieved in the future. (Note: a mill working month consists of 28.33 days.)
Total Company operating expenses start at $794,402 for the $1,500 ton production level up to only $1,108,163 for
3,375 tons peiOây in Mãy 2010. The resulting cash flow from operations is then minus $'148,630 for December (or
"month one") and then increases to $1,697,258 per month for May 2010.
12
8LC005924
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 13 of 15
2. Flotatíon and Precipitation Results. (See Exhibit 9.)
As discussed earlier, the Copper King fnancial results improve dramatically when a successful precipitation process
is implemented. The projections for this financial scenario are the same for flotation, but add the results of processing
1,000 tons per day of material via the copper precipitation method in December and January, 2,000 tons per day in
February and March and 3,000 tons per day in April and May.
The copper precipitation process is estimated to add (lN ADDITION TO FLOTATION CASH FLOW) $739,612 in
operational cash flow starting in December and growing to $2,218,835 per month by May, when 3,000 tons of
materials are processed Per daY.
The comb¡ned results indicate operatino cash flow of nearlv $4.000,000 per month bv Mav Wh.þh will be suffrcient to
refiiàice li ài structure of the Companv or beoin substantial pavments to lien holders.
Dealinq with Past Due Accounts Pavables
The prior sections discuss how Copper King can reach on€oing profitability with approximately$635,000 in capital
expenditures. However, the Gompany faceð a current problem with its accounts payable. These are.serious and amount
(aé shown earlier) to approximately $3.5 million. (See Exhibit 10.)There is a tendency among outside observers to say,
'ìJust let them wait," or "Pay the vendors over 48 months." ln some cases this might work, but other vendors are more
aggressive and must be déalt with immediately. lf not, the mill could shut down, production of salable concentrate would
stop, and bankruptcy considerations begin.
Some vendors have the power to file mechanics liens and even take critical equipment out of the mill which would stop
production. Many other vendors could easily go to court, obtain judgments and attach both assets and bank accounts.
These vendors can't be ignored!
However, the Company believes that it can deal with these issues by paying approximately $1 million, or less, at the first
closing of tne empire fúnding. Assuming cash flows are as expected, the remaining accounts payable can be paid over
s¡x moiths of operations. Thè Company expects that it could reach agreements with most vendors, both prior to and
after the closing of a financing and thus prevent a shutdown of the Company'
IJ
8LC005925
Case 2:09-cv-00542-DAK-DN Document 54-3 Filed 04/02/2010 Page 14 of 15
xl. Consolidated Cash Flow From Operations and Financinqs. (Exhibits 11 and 12)
When the Empire f¡nancings are closed, Copper K¡ng will have the funds required to make the necessary investments in
operations to achieve strong positive cash flows. This funding helps the Company to achieve a number of other
important goals including:
1. Stabilizing relationships with vendors so that Management can focus on operations,
2. Position the Company for a refinance to pay off its lenders,
3. lnvest in the auditing and accounting work which will permit the Copper to file a ',l0-K and become a fully reporting
company, and
4. Greatly enhance its stock market valuation for the benefit of all investors.
Stock Market Equitv Valuation
A stock market comparable analysis was undertaken this past summer and revealed that copper and similar public
mining companies hãve market équity value multiples of 5.8 to 7.4 EBITDA. Copper King could conservatively achieve
$S to $4 miliion in monthly operational profits as discussed in the projections presented earlier in this document ($36 to
$48 million per year) anOifré Company's equity market value could reach well over $200 million. Then, with increased
potential comin! from the addition of an S)IEW facility and additional exploratory drilling, the equity value of the
bompany woulð rise even more. The current market value is less than $40 million. Part of the plan as the Company
r""ch"" stable positive cash flow is to complete the required account¡ng and legal work to enable Copper King to
become a fully ieporting company. Then it could at least trade on the Bulletin Board (removing the stigma of Pink
Sheets) and låter'advañce to'a listing on the NYSE or NASDAQ. These events should further enhance liquidity and the
valuation of its shares.
xil.
********t*t**tt****Ê*t******t**t***
t4
8LC005926
The documents reveal a lot of their financial issues, they actually contain a lot more information than many 10K's I have read. They detail almost every dollar they owe and to who, as well as a business plan as to what they need going forward. They look like they were prepared last November, so I am sure some things have changed, but much more information than we have seen so far from CPRK
Thanks for that BMR, i was looking at another miner NAK, they are VERY well funded and project that it will take 12 years for production.
http://www.northerndynastyminerals.com/i/pdf/ndm/NDM-Facts.pdf
I have no problem being patient with CPRK
How do you know who sold the shares? It could have been me that dumped say 12 mil of the shares I bought at .16 to .18 ( not saying it was) or it could have been any other large shareholder just trading 10 or 12 mil in anticapation that it may drop into the teens again and pick them up again at that time. There are many different reasons for investors with large inventory to move shares around. I just don't know how you know the Co. sold those shares into the market when that is not a legal way for the Co. to issue dilution. JMHO
Agreed Paid, I could have done the same thing,(I didn't)but many of us on here have tens of millions of shares. I have bought as low as .0014 and I routinely buy/sell in 500K-1M share blocks depending on what the volume will handle that particular day. Did anyone here happen to pick up any of the .0026 shares today ? My buy was set at .0022, I keep hoping for it to sell down to that level, but it has been holding up remarkably well these past couple of weeks, in spite of their troubles. Very few shares sold short today, thanks for posting it shiznit. Have a great weekend guys.
Dude, I asked him for a copy of what he sent, and here is his response.
Morning Chuck,
Yeah.. I would've posted my email to SFC but it was an online email form and I forgot to copy the body of my message before sending it. I didn't ask any specifics, just whether they could confirm Marc's employment at SFC and what department he worked in.
Richard, I hope so, .0028 has proven a pretty good support line recently, I will be adding 5 million shares at .002, if it drops that much this week.
Thanks Ally, I dont know if these have been posted or not, but here are a couple of videos related to his dealings with the Country of Ghana
http://southworthcompanies.com/video1.html
http://southworthcompanies.com/video2.html
Reg78, fair enough, I just came across the blog while trying to find some information on him. I have been to Salt Lake City a few times and I understand what you are saying about the religion, but I don't think he wrote it with his business in mind. I started buying CPRK over a year ago, and just found the blog recently, it had no bearing on my buying decision, maybe I am wrong, but it does add to my confidence in the man, especially after some of the people involved in previous incarnations of the company.
On another issue, is anyone surprised as I am that the pps has held up as well as it has since the mill shutdown? I fully expected it to be in the low .002's by now. I sold off a few million shares in the .004's and .005's a few weeks back, and have been waiting to re-buy. Perhaps I will get my chance this week.
Reg 78, you say he is running it on a "wing and a prayer" I have to agree with you on the prayer part, lol I did some digging and found his blog, take the time and read both pages of it, he seems very sincere in his beliefs. Not saying that it means he is a good businessman, just gives you a look at his character in my opinion. Make of it what you will.
http://marcworth.blogspot.com/
The folks on Mystockbuddy did a little checking on Mr. Southworths resume, thought I would share a little. Thanks to Jaymo and Bufarda
http://www.sentryfinancial.com/structured5.asp
Here's the email response I received from Scott Young, COO of Sentry Financial Corp.
Quote:
Jason,
Marcus Southworth is a past employee of Sentry who worked on international transactions. I hope this answers your question. Have a great night.
Scott F. Young
Chief Operating Officer
SENTRY FINANCIAL CORPORATION
201 S. Main St., Suite 1400
Salt Lake City, UT 84111-2215
Phone: (801) 303-1111
Fax: (801) 303-8111
E-mail: syoung@sentryfinancial.com
www.sentryfinancial.com
$3 a share? do you mean $0.30 a share? I would love to see either[color=red][/color]
lol, I think both numbers are years away, .03 is possible in my opinion, but not this year. My conservative goal is just .01 by years end. Anything more is gravy.
Many thanks CandyB for your report from your visit today, it is much appreciated.
Fund,and penny, thanks for all the info on this company that you guys have posted, I have a link to a word doc that has TONS or relevant info. I absolutely love the transparency of this little company, and especially like the way their PR person Rhonda answers questions quickly and thoroughly on their facebook page.I wish my other favorite copper miner CPRK would would follow their lead. Many thanks to Gypsy from another board for putting all this info together in a doc.
http://www.mediafire.com/?lodmlzimh0y
This should fill a few more holes CopperKen, thanks to nodebased from MyStockBuddy, And Thank you Ally for the info on the magnetite production. His responding to you on Easter weekend is impressive. A big plus in my book, hopefully just the beginning of transparency to come.
Dug around on the Utah Gov server and found all the docs related to CPRk and their operations:
WUCC Mine
http://ogm.utah.gov/fs/mineralsfilesbypermit.php?M0010067
Bawana Low Grade Ore Pile
http://ogm.utah.gov/fs/mineralsfilesbypermit.php?S0010076
Mary I Breccia Pipe
http://ogm.utah.gov/fs/mineralsfilesbypermit.php?S0010077
OK Mine Pit
http://ogm.utah.gov/fs/mineralsfilesbypermit.php?S0010078
Maria-Hidden Treasure Mine
http://ogm.utah.gov/fs/mineralsfilesbypermit.php?M0010059
Midvale Placer Cactus Tunnel
http://ogm.utah.gov/fs/mineralsfilesbypermit.php?S0010060
Hidden Treasure - Maria
http://ogm.utah.gov/fs/mineralsfilesbypermit.php?S0010061
There was some discussion on this board yesterday about an old buyout rumor, Scott68, who posts here occasionally, made an interesting post on mystockbuddy after seeing the discussion here. I am guessing that you guys are going to be having copper withdrawls like I am over the long weekend, and would love to hear your thoughts on his speculation. Here it is
Random long weekend speculation ... again ... just random speculation on my part ...
I noticed that the ?Chinese offer? to buy out CPRK came up on I-hub again yesterday.
Funny, because that was going through my mind at about the same time that the post came up on I-hub.
Speculation ?
Is it possible that there is a buyer in the wings for CPRK and that all of the work/improvements/staff changes/lay-offs that are going on right now are just a prelude to someone coming in and buying this out?
1. They get rid of management and have temporary guys holding those positions right now ? a prospective buyer would have an easy transition to install their own management
2. They do a test run of the mill ? so a prospective buyer can see it work and see the problems
3. CPRK agrees to fix the problems and get permitting ? so a prospective buyer steps in without pending regulatory problems
4. Most of the day to day laborers are gone ? prospective buyer could do their own hiring starting from scratch
5. Trying to get the stop sign removed ? would immediately increase pps value for the prospective new buyer
I?m sure it?s just wishful thinking on my part ? but ? it doesn?t seem out of the realm of possibility to me.
Essentially, CPRK cleans up the mess as a prerequisite to a buy-out ? leaving the purchaser with a legit operation and CPRK investors made whole ? and then some.
I suppose the question would be, ?if CPRK actually gets all of this together, why would they THEN chose to sell??.
Good question, but I?m guessing that most of the guys in management right now didn?t get into this investment so that they could actually run this mine.
For some of them, getting out while the getting is easy, is probably pretty attractive.
Am I full of crap?
I believe that the "rumor" was that he was offered 750 million, and that he would consider taking a billion for it, but absolutely did not want to sell to China. Of course this is just how I heard it, the whole thing could have been made up.
This is NITE
http://www.google.com/finance?q=NASDAQ%3ANITE
Knight Capital Group, Inc. (Knight) is a financial services firm that provides market access and trade execution services across multiple asset classes to buy- and sell-side firms, as well as offers capital markets services to corporate issuers and private companies. The Company has three operating segments: Equities, FICC and Corporate. Equities segment includes equity market-making and electronic and voice institutional sales and trading in global equities, futures and options. The FICC segment includes global research, voice sales and trading in fixed income, as well as electronic trading in fixed income and foreign exchange. The Corporate segment invests in strategic financial services-oriented opportunities, allocates, deploys and monitors all capital, and maintains all corporate overhead expenses and all other expenses that are not attributable to the Equities and FICC segments.
http://www.knight.com/
"Please Marcus, a teaspoon of data soon."
lol CopperKen, you know darn good and well, that if he gives us a teaspoon, we will be complaining that we did not get a soup ladle full. I for one, am willing to give him a few weeks to allow his butt to get adjusted to the CEO seat.
Mariner !!!! Many thanks for the writeup of the radio show !!!!
I shared it on another board giving you and Ihub credit, thanks again!!!
I was part of the group today placing multiple small buys above the ask, when the last sale went to the bid price, and had a blast. I am sure that there were a few MM and shorters very confused !!!! I put in a buy for 100K (along with Trants from Mystockbuddy) right at the close at .0058 to try and paint the tape, and actually got filled at .0053 at 4:01 according to my execution notice. I guess I should have tried to buy a little more to wipe out the seller.
I suspect that the pps will drift a while now until we get some more positive news (LTF, financials, pinksheet info, TDA restriction lifted) but I think the worst is over. I was buying very heavily in the .001's and .002's so I am up just over 100% on my position so hopefully I will be wearing a green shirt in June !!!!!
Thanks again to all you guys who contribute so much information on our favorite little copper mine.
Wow JIT, I am going to be happy with just .01 a share, I also want to thank you for your report on your mill visit, I copied your posts and photo's to another board (giving you and Ihub credit of course) I am planning a trip myself later this year, will try and time it for the car show. I ended up bumping my bid to .0032 and grabbed a chunk of my trading shares back right before the close, I think I will be happy I did.
For those who missed the radio show, here is a good summary I copied from Scott68 on MyStockBuddy
Summary/paraphrase of the radio interview with CAM:
1. Mill is up and running
2. PR will come out tomorrow or Monday (he seemed to hint at tomorrow)
3. PR will address "90%" of shareholder concerns that CAM is asked about daily
4. CAM will be back on the radio on Tuesday to talk about the PR
5. Duties at the mill have been "reassigned"
6. Prior estimates of the CuCon quality were accurate and that is not an issue
7. They have an interim buyer for their product and expects that to turn into a long term deal as they provide consistent production
8. Magnetite production, if prices stay as anticipated, will generate enough income to cover over-head at the mine/mill
9. Working diligently to get the "stop" sign removed
10. Said upcoming PR will start to provide the kind of transparency that is needed to spur investment and confidence in the company
Note to RTR, I got your PM's, all good, thanks
There's more, (I'm sure others who listened will add their thoughts) but that about sums it up.
Looks like they did break it up, but I did sell at .0034, don't know why you cant see it. Here is one from one of my accounts, have to open up the other one. I have no need to lie.
03/18/2010 12:38 PM $729.7556 Sold 214,634 CPRK@ $0.0034 Details
03/18/2010 12:38 PM $970.2444 Sold 285,366 CPRK@ $0.0034 Details
03/18/2010 09:38 AM CPRK Copper King Mining Corporation 500000 Sell
$0.0034
Executed Detail Quote