Re: Events, Factors, Dependencies and Expectations
posted on
Jul 13, 2008 05:00AM
Factor #3 answers my question of yesterday. Rusoro "gifted" half of the 25 million dollars they paid to Hecla for an 'end-of-life' mine in the form of shares to Venezela (25 million dollars of shareholders money....coughed up by people like you and me) and gave away thousands of hectares of land rights along with the usual millions of dollars of social construction projects for the privelage of becoming a 50% "mixed" enterprise and "preferred partner". I'm still not sure what the definition of "mixed" enterprise means exactly. Correct me if I'm mistaken....but it appears to mean that the 50% that constitutes the "private sector" portion of the enterprise (i.e. you and me) take all of the risks, put up all of the capital and fund all of the social projects in exchange for less control over business decisions and compromised profit making ability going forward. Seems like Rusoro really knows how to drive a hard-nosed bargain. That CEO on the BNN interview looked like a pumping sleaze to me. I would not invest one nickle in Rusoro.
I sincerely hope that part of the behind-the-scenes negotiations going on right now between Crystallex and Venezuela does not include any modification of our operating contract. I certainly wouldn't be too excited about being given the option to "gift" half of shareholder value to the state of Venezuela in exchange for the permit....(it's all about protecting the environment you know)...and the warm and fuzzy feeling you get as a private investor knowing what kind of inept, corrupt, slothful bananaheads are sitting at the boardroom table with you....trying to figure out the 'corporate plan' going forward...especially given the fact that "profit" is a four letter word in Venezuela.