Hello Tom,
I have chosen to address these comments to you because I share your conviction that precious metals are present in quantity in the Playa clays. Positive results from assay and recovery have been returned by too many different players over too many years for this to be the product of either accident or manipulation. I want to use this forum to let shareholders know the background of last week's events.
First of all, let me tell you that I speak for no one but myself and interpretation of events is from my perspective alone. Last week's Board of Directors meeting was held in my home because my present work schedule would not permit me to travel to Vancouver. While I did not call the meeting I must take some responsibility for the clumsy and awkward process. I'm sorry for the spectacle that this presented, but I make no apology for the goal of the meeting. The intent of the meeting, as I am sure is obvious, was to see the board dissolved to be reconstituted with a majority representing the "Father Gregory" group. Father Gregory is simply a rallying point for a large number of disaffected shareholders who feel that they were denied due process at the AGM and are distressed by the direction the company has taken over the past two years. I support their aims.
I have three main reasons for wanting to see this board replaced:
1] The board as it was previously constituted was dysfunctional. Members such as myself who were perceived to be in the "Father Gregory" camp were not given information about policy and fund-raising activities, even when we pointedly asked for this. It seems to me that this is a "nonstarter" for any Board of Directors.
2] Those members of the board who preceded me had, in my estimation, failed in every way to advance the welfare of the shareholders. I realize that much of this was out of their control, however someone must take responsibility for the fact that the share price has continuously fallen over the past year. The efforts at recovery have led nowhere. Most significantly, they have been singularly unsuccessful at attracting investment capital. In fact, no new investment has been made in the company since last year's than ill-fated private placement arranged by Russell Smith [for which he was well-compensated] to which many of you unfortunately subscribed.
The "Father Gregory" group has offered funding in return for control of the Board, but thus far the offer has been spurned. I'm concerned that out of pride and stubbornness this board will lose an opportunity that in the present investment climate is very rare. Within the "Father Gregory" group are a large number of longtime Naxos shareholders who have suffered with the rest of you, but still believe in in the potential of Franklin Lake and are still willing and able to support the venture.
3] Most importantly, the existing board is completely dismissive of efforts to recover precious metals from the playa clays. They will invest all of the company's remaining capital and energy into efforts to make the company a conventional mining enterprise, whether that be for lithium or any other substance. I have no objection whatsoever to these efforts. The problem is that we are unlikely to attract sorely needed investment capital unless we are prepared to give away the company. Furthermore, even if they are successful the return will be seen far down the road and will never bring the stock price to a very high-level given the shares outstanding in this company and the modest returns from success in these ventures.
I believe that this company's only chance for success is in developing an economical recovery method for extracting colloidal precious metals from the clay. Most conventional geology/mining people had never bought into this concept, just as they would not buy into the "heap-leach" technique for gold recovery until the evidence was overwhelming. This same prejudice is now prevalent on the Board of Directors.
I would like to see an open-mindedness about this possibility. I think that the company should be fully supportive of any efforts by any person or group to prove recovery of precious metals. I don't give a fig for the opinion that certain people [such as Mssrs. John, Johnson, Lett, Groves or Blumberg] should be ruled out in helping us achieve this goal. I believe we need to set aside our prejudices and weigh each technique on its merits alone. If Dennis Rodman has a method of solving this riddle, then he can be the chairman of the board for all I care.
I look forward to better days for this company, but there's no question that the next two or three months will be pivotal.
Lawrence Brierley |
