A well respected investor with Mexus who's fed up with Paul T. forwarded me this post made by Paul Dent from a private forum.
Here's some details in bullet point format. Not for public dissemination.
1) MarMar was not adequately funding the project. The engineer who was on site was fixing the issues but MarMar stopped paying him and the workers. There was no gas etc to keep things going. Yes, this agreement should have been terminated sooner. MarMar did a good job of keeping things moving until they didn't. There was frustration voiced to MarMar about timeliness etc during the last 6 months. Obviously, MarMar is not happy with this decision. There attorney, who didn't get paid either, is now on our side as well which helps. We are in good legal standing with the termination of this contract. Someone can always dispute a contract but Paul and attorney's are confident with the decision to terminate. No attorney's in Caborca will take Marco and MarMar as clients. We are considering legal action against MarMar for lost time and expenses.
2) The environmental issues are minor in scope however it's one of the main clauses for termination of the agreement. I spoke to Paul this morning and there are no written violations from the government as of today. We are preemptively correcting concerns that will be an issue later if left unaddressed. They include: Putting a 6 ft fence around the heap pad. Proper containment of the cyanide on site. cleaning various oil spills. Per Paul, this is the extent of the concerns; Dino will attest that the control and cleanup that Marco and group showed at the mine site was poor. This will be fixed.
3) Mexus was not footing the bill for this whole operation since the inception of this agreement; We stepped in as our frustration grew in order to expedite production and get positive cash flow with an understanding that we would be reimbursed.
4) Robert Garcia was called off the site out of an abundance of caution. He will be back onsite when needed.
5) The heap pad is being evaluated by Cesar and the University of Sonora lab. Its like an SIU case; Where, what, why and how. Where is the gold if not on the pad, What happened to the gold, why is the gold there yet not releasing to the pond, and how do we fix. I've been told that there are solutions if salt was the issue. Stay tuned for more detail on this as we will release additional info as it becomes available.
6) Paul is well aware of the outstanding debt coming due; He says that if we can't sell gold by then to pay he will do an off market sale of his personal shares and do a low interest loan back to the company to pay this debt (assuming legal to do). He will not let this toxic debt expire.
I think this is a good start. I'm trying to be transparent as possible here. Please keep sending me questions and I will do my best to answer. -Paul Dent
