Mining Company research board

[pitboss22]

Thanks 1manband. Something else that bothers me about RRHI is the rather complex structure of subsidiaries. I can see keeping the dental unit, Lantis Laser, separate from the mining operations but the rest is kind of baffling.

Aside from the dental unit, they have an 80% stake in a public subsidiary (Mabwe Minerals, currently called Raptor Network Technologies [RPTN]) and a wholly owned mining subsidiary (TAG Minerals) which holds a 49% stake in a foreign private affiliate (TAG-Z). TAG-Z, in turn, owns Ontage Resources which in turn holds a 10% stake in Slashwood mining. Confused yet?

TAG-Z bought Ontage Resources with shares of RRHI (it was still LLSR at the time). TAG-Z is 51% owned by Tapiwa Gurupira. Ontage Resources was owned by.....Tapiwa Gurupira. Tapiwa Gurupira is one of the three Directors of RRHI and one of the three original pricipals in TAG Minerals.

Zimbabwe has a law, called the Indiginization Act, which states that ALL businesses in Zimbabwe must be at least 51% owned by black Zimbabweans, hence the 49% of TAG-Z.

OK, now the company has said, "TAG Minerals is a U.S. based (incorporated in Wyoming) mineral resource acquisition, exploration and development company, with operations conducted through its operating affiliate, TAG Minerals Zimbabwe (Private) Limited.", and, "Mabwe Minerals Inc. is a mining & mineral company created to optimize the abundant mineral/metal resources of the company's World Class, hydrothermal mountain range home to Dodge Mine located in Shamva, Zimbabwe."

Now, Mabwe Minerals/Raptor Networks is a public company. 80% of the stock is owned by RRHI and about 14% is/was owned by the former creditors of Raptor Networks, and the rest by the RPTN bagholders.

I'm wondering why, in view of the Indiginization Act, they decided to put the Dodge Mine in the 0% Zimbabwean owned public entity, Mabwe Minerals?

Kind of sounds like the three Directors are Larry, Moe and Curly, doesn't it?