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Message: Factual & Interesting Email

Factual & Interesting Email

posted on Jun 14, 2009 09:21PM

Just received this very factual & interesting email

Facts From the 2009 AGM Information Circular:

Mr. Plaxton costs CSG shareholders for 2009 with COC = $60K (for 9 months of SAR set up and intensive work) + ($250k/12 * 7 or 8 months) = $226,666 USD (for Chair salary) with $0 COC Bonus and $0 STC Bonus and no vesting of unvested options for a grand total of $226,666 USD @ 1.10 = $249,333 CAD paid to JMP, WHICH IS LESS THAN HALF OF TA’S SALERY.

Mr. Atkins costs CSG for 2009 with COC = $250k base salary + $250k bonus salary (depending on production ramp up, major increase in net earnings / profits, and most importantly share price and volume) = $500K/12 * 7 or 8 = $333,333) + $600,000 COC Bonus + $100,000 STC Bonus + 1.24 Million options @ $0.44 unvested and unearned ALL vest on COC (i.e. assume a $1.00 convert price (simple math) into new really good paper this option value is worth $0.56 * 1.24M = $694,400… For a grand total of… $1,777,733.33 CAD paid to TA which is 613% higher than what will be paid to JMP (i.e. 7.13 Times More money paid to TA than JMP).

ALL CSG SHAREHOLDERS SHOULD COME TO THE AGM TO FIND OUT WHAT DELIVERABLES JMP HAS PROVIDED TO CSG SHAREHOLDERS AS WELL AS WHAT DELIVERABLES TA HAS PROVIDED TO CSG SHAREHOLDERS. A LOT OF REALLY GOOD PROGESS IN JUST ONE YEAR FROM CURRENT LEADERSHIP SHARE PRICE AND FURTHER GROWTH IS COMING.

JMP HAS provided the following VALUE ADD:

1) Stopped a hostile attempt at $0.15 to $0.20 CAD

2) Stopped numerous equity financing from $0.30 to $0.50 CAD

3) Restructured M&Co/Chester loan with an amendment from monthly payment to once yearly and sorted a potential default issue all extremely cost effectively

4) Set up A Strategic Alternative Review (SAR), M&A Mandate, M&A team, and process to maximize shareholder value wrt an attaining an optimal solution for reaching critical mass, value creation, and realization which should provide $25Million to $50 Million in shareholder attainable value just in the short term

5) Brought a straight debt facility that is probably the most efficient financing in 2009 YTD in the entire gold industry! This keeps CSG shareholders leveraged long of our CSC Paper as there are NO WARRANTS and NO CONVERT on this debt and our CSG earnings have a forecasted beta of five to one wrt gold (and thus are CSG paper is five times better than gold over the medium to long term) Further, this keeps CSG shareholders leveraged long of Gold as there is NO Hedge yes NO Hedge required J thus the only cost is a very competitive USD cash set up fees and USD interest payments spread out over time so as not to hurt cash flow which makes us all short the USD, very long gold, and very long our high Beta and high Alpha CSG Paper J

6) Significantly helped stock price raise from $0.15 back to $0.60 to $0.70 range which is critical for SAR

The list goes on and on. Please come to the AGM and get the real story on JMP’S SHAREHOLDERS REPRESENTATION AND THE ACTIVE VALUE ADD MR. PLAXTON PROVIDES TO ALL SHAREHOLDERS IN HIS POSITIONS AS:

Chairman Board of Directors Castle Gold Corporation

Chairman M&A Board Sub Committee Castle Gold Corporation

Chairman Finance Advisory Committee Castle Gold Corporation

Chairman Compensation and Nominating Committee Castle Gold Corporation

Member Corporate Governance Committee Castle Gold Corporation

I am certain JMP will expand on this and much more at our AGM. Please show up.

Also determined straight from the Information Circular:

1) The entire IBOD’s (i.e. JMP $250k pa + LH 37k pa + MB $55k pa + MS $42k pa = $384k USD pa), cost’s less than TA (i.e. $500k CAD pa) on an annual salary basis and this does not include COC and STC Bonuses, and options vesting for which all IBOD members (except TA b/c he is not an IBOD member) receive No COC and STC Bonuses and as shown above TA receives $750K CAD in COC and STC Bonuses PLUS potentially a very large vesting of unvested options valued at $0.56 * 1.24M = $694,400 CAD (assuming $1.00 conversion for easy math).

2) The entire IBOD’s have been granted 1,725,000 options with a combined strike price of $0.XX (i.e. JMP 1M - 250k = 750k, LH = 525k – 150k = 375k, MB = 350k, MS=250k) for service in all of their BOD and Committee Capacities for CSG (i.e. in aggregate for ALL independent directors) and about the TA been granted 1,725,000 options with a combined strike price of $0.XX same number of options as (i.e. 1,500,000 with average strike price of $0.44 CAD).

All shareholders should come to the AGM for some good discussion and to hear all about the very exciting future of CSG

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