Fonon Corp. (fka FNON)

[pitboss22]

Yes, I didn't mean to imply that their claim to ownership was valid. That is yet to be decided in court.

In my opinion, based on the Share Purchase Agreement and other documents, Chiroswa owns Dodge mine.

Mabwe purchased 50% of the shares of Chiroswa and so held a 50% interest in the mine. They subsequently cancelled their shares in Chiroswa. Mr. Valentine now owns 100% of Chiroswa, which still owns Dodge mine.

Let me reiterate, Chiroswa owns the mine. MBMI bought 50% of the shares of Chiroswa. Chiroswa still owns the mine. MBMI then cancelled its shares of Chiroswa, so they hold NO INTEREST in Chiroswa. Because MBMI cancelled its shares of Chiroswa, Mr. Valentine is the sole owner of Chiroswa and Chiroswa STILL OWNS THE MINE! Therefore, Mr. Valentine owns the whole thing.

There was NO TRANSFER OF OWNERSHIP FROM CHIROSWA TO MABWE!

You had stated that Mr. Valentine was willing to settle for his original 50%, which I thought was very generous.

I was merely pointing out that if MBMI were to accept Mr. Valentine's very generous offer of 50%, MAB-Z would be the owner of that 50% and MBMI would only have a 49% interest in MAB-Z's 50%.

In other words, MBMI would at best, only be a 24.5% stakeholder.