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Noting the recent changes occurring at TLR... ($0.29, 12 million shares, $3.5 million market cap, $350K cash) with a recent flurry of filings... including the loss of an experienced board member, at the same time they're making changes to the corporate documents, amending the bylaws, which facilitates electronic board meetings, lowers the threshold on use of alternate meeting sites, and alters their rules on the notification of board meetings... why ? Also... changes restricting the ability of the shareholders to call a special meeting by altering the threshold from a need for representing 10% to now requiring 33% of shares.
I'd question their ability to make some of those sorts of changes without winning the legitimacy of shareholder approval for them... still without questioning why it is they might want to make those changes, or why they might find them useful. Given market events, consolidations are increasingly common... and, reality is that the existing shareholders often don't fare very well in the consolidations I've seen occurring. My initial interest in TLR was a result of a pairing in what I judged to be quality properties, and quality management... with the key element being management it appeared shareholders could trust to represent the shareholders interest properly. I don't have the same feel for, or the same read on the current crew... after significant changes.
So, are they trying to prevent the risk of externally directed take overs / take downs... or trying to make it easier for management or other insiders to accomplish them from inside ? Both ?
TLR is down pretty significantly today, I'd think as a result of the news on those changes being made... with a lack of any clarifying statements or guidance from management or the board... that probably not doing much to sustain confidence...
The changes being made look a lot like others I've seen making similar changes prior to being forced into a management led take out, buy out, or take down. They've also filed financial statements recently, showing the company running out of cash, again, only $350K cash left, at last report. Worth noting that the management changes that have taken place in the last year or two has a new crowd running things... and, the most recent deal, in particular has added a new property, with that now being made their primary focus. That deal has also left Gunpoint Exploration owning 2 million shares out of the 12 million outstanding, or around 17%, while the institutional ownership (if you can trust Yahoo) has increased by 48% in the quarter, still leaving it at less than 2%.
Gunpoint's large interest in TLR creates an interesting set of relationships. Gunpoint CJIMF ( at $0.11, 43.5 million shares, and a $5 million market cap, with $1.27 million in cash) is a wholly owned subsidiary of Chesapeake Gold CHPGF ( $1.32, 44 million shares, $58 million market cap, $0.53/share or $24 million in cash) and shares the same management as Gunpoint.
The key figure at Gunpoint and Chesapeake is Randy Reifel:
As the youtube link notes, he's also a board member at GG.
For TLR shareholders, the meaning, benefit, or risk of having this new set of linkages in the relationships isn't all that clear. Particularly in the current environment. But, TLR is clearly the only NYSE listed issue among them. They've added a new property and have shifted their focus, in their public discussions, at least... to talking about that property, which was formerly the flagship property at Gunpoint. I assume Gunpoint, et al, would not have found that deal useful or worth doing just to transfer that property... if they'd not really wanted to gain control over or gain a benefit from the rest of what TLR had to offer... particularly in district scale opportunities in the Eureka Trend properties and the Seven Troughs ?
So, still worth watching TLR... but, you might want to change the focus and/or expectations in some of what you're watching for at this point ?
Perhaps they'll find it useful to respond with something in context, clarifying the changes in focus and plans ?
