Un update from Milford
Ever since the news of the sheriff’s auction came out I’ve been calling and talking to everyone I know who might have any worthwhile info regarding CPRK.
Here’s what I’ve gleaned, but remember, none of this can be considered the “drop-dead-no chance-it’s-wrong-truth”. I’ve posted stuff here before that didn’t come to pass.
The sheriff sale is serious.
Republic bank, Caterpillar, etc are not the least bit happy (particularly Caterpillar) and they are through messing around. I talked to an acquaintance of mine who works for Caterpillar in Cedar and he says they have been jacked around by Mark & Co. for way too long and they’re sick of it. They are going after whatever they can get. The Sheriff’s sale for them is no joke.
Most of the stuff being sold isn’t surplus junk, particularly the vehicles and heavy equipment. This stuff is very much needed for the operation and WUCC can’t afford to lose it.
The Sheriff’s sale isn’t the only legal problems they have. I know from someone (who certainly knows) that there are a dozen small claim cases ($10,000 or under) headed for court in the very near future. Mark owes money to every business in town along with half the populace individually and people are just fed up.
The new flotation cells, cementation equipment, etc., we’ve heard about are just cobbled together affairs made from spare tanks and other equipment that was lying around the site. There simply hasn’t been any money to buy new equipment, and how well this cobbled-together stuff will work is anyone’s guess. They are still only pulling out about 38% or less copper, which obviously is far less than they would like.
As many of you have figured out by now, Mark is a genius when it comes to mining, but a dunce when it comes to managing money. One of our power company employees who worked closely with him when they were trying to get power to the mill said that he wouldn’t invest in anything with Mark’s name on it. He said (Mark) is “an idiot when it comes to money”. He said, “he simply doesn’t understand what things cost”.
I talked to a guy who told me the following story, which I thought was pretty funny in a sad way.
At a WUCC safety meeting last week, Mark was being chewed out by a number of employees whose paychecks had been chronically late. They complained that it was hurting their credit, and making life difficult in many ways.
Mark’s response to them was:
“YOU PEOPLE JUST NEED TO LEARN TO MANAGE YOUR MONEY BETTER”.
One of those employees probably would have assaulted him if some others hadn’t restrained him. I was told that the entire lab dept. quit after that meeting but I haven’t been able to confirm it.
Okay, now for some better news.
I believe the bridge loan is a drop-dead done deal. My sources tell me it’s in the 6 million dollar range and because of it the Sheriff’s sale will be a non-issue. This bridge loan thing is one of those “rumors” that has been confirmed by so many different people that I just have to believe it’s true. The money will be used to partially pay off numerous debts, while an LTF deal that will follow shortly will pay off the rest. My sources tell me that the bridge loan and LTF are coming from different entities and the bridge loan was always contingent on the LTF. The bridge loan people didn’t want to spend their money if the LTF money wasn’t far behind because they figured without the LTF they’d just be throwing their money down the toilet. If the bridge loan is in fact a done deal (and I believe it is) then I think that is proof positive that LTF is a done deal also.
And the LTF people weren’t willing to spend their money unless they had almost complete control over how it was spent. In other words, Mark won’t be controlling the purse anymore. I’ve heard lots of different rumors about what his new role will be, but pretty much everyone agrees that he won’t be running the whole show any longer.
My contractor friend tells me that he is very confident he will be paid about half of what he owes this week, with the remainder coming inside a month. He says he has been in touch with management every day for the past week, has seen the loan documents, and he is no longer worried. I trust his judgment.
I really believe we’re almost out of the woods here, boys and girls, and while I’m not buying more shares right this second (I’ve been disappointed before) I have funds ready to go as soon as an official announcement from the company is forthcoming. I’d be surprised if we don’t hear something this week.
