AWESOME???? What a Joke. I did some DD and got an answer to my question about DEBT.
$5 Million in Litigation
$6 Million owed to Vendors
$1.2 Million in State & Federal taxes
________
TOTAL $12.2 Million in Debt
A $400K Loan. Nice start, but I wouldn't say Awesome.
Current Litigation Matters-
The Company is a defendant in various civil lawsuits. Among these lawsuits is a claim by Nevada Star/ Pure Nickel asserting that a default has occurred by WUCC/CPRK in a purchase and production agreement entered into in 2004. The Company disputes that it is in default under the agreement and is aggressively responding through the court.
The Company is in default under an agreement with a major buyer of its magnetite. The amount of the Company's obligation exceeds $10 million in cash and an ongoing commitment to produce and ship magnetite. Due to the suspension of the Mill operations, the Company is currently unable to fulfill its obligation to produce and ship magnetite. The Company is in active discussions with the lender/purchaser to resolve its concerns and provide product.
Approximately 60 acres of raw land located in Tooele County, Utah has been foreclosed upon. Additional claims for deficiency and damages have been filed against the Company. That deficiency litigation is active and claims are in excess of $5 million.
Other litigation has been filed against the Company by vendors. The Company has approximately $6 million of vender debt primarily related to the construction of its Mill facility.
The Company is in default with its equipment lenders and principal mortgage lenders. Its indebtedness is estimated to be well in excess of $60 million. The principal mortgage loans have been in default since July 2007. The Company continues to work with its lenders towards a satisfactory arrangement for the repayment of its loans. There is no certainty that the lenders will continue to cooperate with the Company or that the Company will be able to repay its debt.
Many employees have been furloughed while the Company is resolving the aforementioned issues. Some are owed two and three pay periods of back pay. A resolution of this and other pressing financial issues are directly tied to the successful completion of the short-term loan agreement, previously described.
The Company also has other obligations outstanding associated with Federal and state payroll taxes. Such obligations amount to over $1.2 million.
Marcus Southworth, the Company's recently appointed President, stated: "We understand that shareholders and lenders are anxious to see measurable improvements and solutions of these pressing matters. In light of today's disclosures to shareholders, I and our management team remain optimistic and resolute in resolving the issues presented. Some of these issues are complex and require great care and focused determination. We enlist the patience and continued support of shareholders and investors during this critical and important time."
Just My Opinion
AI
