Minutes from meeting:
Ok let me start with a disclaimer. These are my opinions and are not that of the company (PCFG).
Make up your own mind. Do your own DD and invest with the advice of a qualified investment broker.( I,e not me)
I fell asleep in teh chair doing this last night so I know they are a bit delayed but here it goes.
Sorry I wasn’t able to real time updates from the meeting but I was the only one asking questions and trying to take meaningful notes.
First of all the attendants was very poor, Rob, Mitch, Me and a couple. The room was set up for around 30 people and refreshment was provided.
Both Rob and Mitch look apprehensive. I think they were relieved with the small turnout.
I can confirm they at least look at the message board from time to time. While talk before the meeting about my wish to visit the mine Mitch said the pictures posted on the IHUB page was very representative of what it was really like.
Mitch is defiantly the more people person and engaged with introduction and general conversation Rob sat quietly at the top table.
So Down to business, Rob read the rules for the meeting and the articles that were up for vote, Mitch was the secretary for the purpose of the meeting.
Interesting note for next time is other people can submit articles to be voted on at a share holder meeting, we need to look into to this for the next time.
After the reading of the articles there was opportunity to ask question before the Vote.
Q1 what is the advantage of changing the value of the stock from $0.001 to no value.
This is all about getting investors and paying off debt. If the value was to drop below the par values then investor could not cash in their shares and therefore would not invest in the company.
Q2 Why R/S. Again this is about investors not wanting to invest in a stock below a certain value. It will be determined by financial advisor to the company and potential investors. It may not even be used but t is another tool to allow them to raise capital to get the mine moving.
After that there was a call to vote, I was the only one voting in the room which meant Mitch had to spend 5 minutes on the laptop ensuring my vote hadn’t changes the outcome, I felt like I was Ohio in the general election .
So the results, Of the 2.5 Billion shares available to vote 59% or 1,222,596,483 did.
All articles were passed and will go into effect as early as tomorrow or as soon as the state is informed of the changes to the article of the company, there should be an 8K or out type of special filling on this.
Now the official business of the meeting was over they opened the floor up for questions.
1) Then did the mine stop operating : In October
2) When does the 120 day stoppage start: As of the 11/9/12 PR
a. Issue with NDEP taking 60 days, it used to take 30 days but the inspector retired and NDEP hasn’t got anybody to replace him yet, The supervisor informed PCFG the future changes could take at least 60 days
3) Is the Mine manager still employed by PCFG: No they came to a mutual agreement to part ways? (I would have fired him twice).
4) Why did the share pre drop so much last Friday (Not my Question) : Some people decide to sell after we announce the mine had stopped production.
5) Why Stop production
a. Basically with all the issue they were not making money with all the mechanical issues.
b. $8000 a day operating costs and $3000 of that is salary,
c. Rod said that he would prefer to leave the gold in the ground until they could mine it more efficiently. Should be able to mine for $6 a yard. The plant when operating as it is should be able to do 1200-2000 yards a day which at their recovery rates should have returned 350 oz a quarter. The mine can be expanded to 4000 yards a day, with 1 yard = 1.7 tones of earth. Leavening the gold means it holds its value. Taking it out at a lose means it’s gone.
d. What are your recovery rates when the plant was running well? Rob said decent, they would have been operating at a profit. (sorry couldn’t get a number).
e. Labor issue? The employment level in the area is <5% so there isn’t a lot to chose from, (Example if Barrick is paying $30hr and PCFG are paying $30 would you work for? So PCFG have two options a) Pay more b) take the people Barrick doesn’t want! So this is where the issue with training and wanting to do the tough job of cleaning slug out comes from ,
6) Geo Tube or once savoir? : When running they are every good a giving us clean water. The issue is they require constant monitoring when operating, currently operating 8 tubes, Once full it has to be dried removed, Pit has to be cleaned out , New bad laid out correctly ( seemingly the old staff had mayor problems doing this) and then refilled. Rob want to go to a 2 bad system and use another machine (didn’t catch what it was) which will give plenty of clean water but remove or greatly reduce the amount of labor involved in the bags.
7) Why concrete pits: well that makes the job of cleaning the pits easier and helps with laying the bags out correctly.
8) Why does this fell like a pump and dump stock?
a. Wow did I piss them off with this. Mitch was very passionate with this, That they spent 10 years and around $10m investing in the mine, Taken all the time and money to get current again, neither of them has taken a pay check ( Except share) since 2007 and that they stand to benefit but it been successful. They said that this is common stuff you hear when the stock price drops but it had dropped before and come back and they intend to make it a success. This is why it’s worth going to these thing as you get the sense that it’s their baby and they are protect of it.
9) Would you sell the mine? Rob everything is for sale at the right price. Currently the stock price the company is worth $4m , Payment for Project w are $2m. Would they sell for $100,000 no the price would have to be right. The current value is way under what the company is really worth.
10) Why the Q’s are always filed at the last second?
a. If the end of Q3 is October first they don’t get all their invoices until end 3rd week, Then there accountant has to enter all the items into their account software, then it goes to the auditor, for a week and then it has to be up loaded in a special format so the new Q are searchable (not just screen shoot).
b. By hiring another person and paying them $100K a year you might get the Q out 1 week earlier. ( Already 4 people in head office including Rob and Mitch)
c. Every Pr cots $500 - $1000 to file ( I think it has to be checked by legal)
11) Project W
a. They believe that they will complete all $2m payments, if they don’t then it’s a win: win for PCFG, They have to return all claims and data to PCFG, They also have expanded the claim ( PCFG 80 claims) by another 100 claims which makes are 40% greater, PCFG get first right on these and then gets to package them up and sell the project again or mine it, They said because the market has improved they could get double the price today it they had it sell again.
12) Fenely will you use the same mill design: They will use some but they are working with engineer to come up with the right fit for that site.
13) Law suit, they explained this more to me I hope I do it justice.
a. 20 days before the warrants were due to expire the fund that owned them sold them for $2500 to an individual in California, He then turned around and said that he thought they should be worth $500,000 and want that payment and sued PCFG and the fund.
b. Basically this is a scam that the person is hoping you settle somewhere in the middle to avoid legal cost.
c. The Boys said if you know them personal they don’t give money to anybody that doesn’t deserve it and believe they will win, they counter sued of something and legal fees.
14) all claims are currenlty paid in fully.
15 ) they will be using another engineering company this time
Anyway I did my best, It was worth the trip to meet them and look them in the eye, Hopefully this helps some of you one way or the other.
