Don’t be misled by the combative tone of the following letter.
I’m lining up support all over the place, including from people you wouldn’t expect.

This Second Letter is better than the first one (if I do say so myself) because:

#1) Instead of just talking “undervaluation,” I quantify it.
#2) I mention poorly publicized Corem results (not being discussed on the Message Hub).
#3) Because I’m reacting to events, it’s put me in a position to be more forceful.
#4) I’m directing the message to favorably-inclined supporters of our cause.

Hello Friendly Institution or Friendly Insider or Friendly Major Shareholder.

Thirty plus substantial Fancamp shareholders, named “Shareholders for Accountability at Fancamp,” regularly exchange ideas and information. Foremost in our deliberations is the depressed share price and how to replace what’s causing it with a slate of reforms, which will encourage greater numbers of investors to buy. Meanwhile, we’re in the process of tallying our voting power, which presently is in the tens of millions of shares.

Fancamp has two basic investment messages. First, our market capitalization is only a tiny fraction of the value of our properties. Second, FNC shares are essentially being given away for free because the market value of our stock portfolio exceeds our market cap. Of course, these messages are close to worthless when we spend close to zero time delivering them.

At two percent of the spot prices of our NI 43-101 compliant Magpie resources, we have (in terms of Magpie only) a $12 billion secret on our hands. According to the NI 43-101 and Fancamp’s Magpie Brochure, Corem has extracted “a 94.8% concentrate of titanium dioxide (TiO2).” The “successful” and “proprietary” hydrometallurgical process is “100% owned by The Magpie Mines Inc.”

The two mysteries are: #1) Why isn’t the $12 billion Magpie resource (approximately $112 a share) being tied together, for investors, with the fact that we’ve had successful tests completed on the metal ore, using our successful proprietary process? #2) Why isn’t the compelling share value arithmetic (including our Champion and Argex stock ownership) being coherently presented to investor advisors?

Our President, Peter Smith, is unwilling to talk about it, even through third parties. In our small-cap-exploration industry, our competitors have no reticence attracting investor advisors to their cause. We’re different. Instead of rolling out the red carpet when shareholders (the financiers of the business) come calling, Dr. Smith keeps them at arm’s length. By that measure, reaching out to future investors is out of the question.

The English language has the word, “urgency,” to measure how bad the need is. Obviously, so far as Fancamp’s share price, Dr. Smith considers there’s no “urgency” to do anything about it. Our (emailed) pleas to him that he consider being more open and communicative go unanswered. Instead, we get the opposite, the inauguration of a shareholder communications blackout, which is the equivalent of saying: “Relax and sit back and wait, until the cows come home.”

It’s common sense turned on its head. Being investors, instead of making us all the more welcome, has made us personae non gratae. Naturally, those of us still holding our shares are not amused. Naturally, we’re not standing for it. Our Spokesman, is conversing with every potentially helpful investment officer or institution, including the Fancamp and Champion Boards of Directors.

The fidelity of Fancamp to its shareholders needs to be as strong and as unwavering as the fidelity shown by our partner companies, Champion and Argex, to their shareholders. Champion, for example, names the investment firms whose analysts cover it (for Fancamp, analyst coverage does not exist):

#1) Canaccord Genuity (Gary Lampard, 416-867-6020),
#2) Fraser Mackenzie (Wojtek Nowak, 416-682-4204),
#3) Haywood Securities (Geordie Mark, 604-697-6112),
#4) Jennings Capital (Peter Campbell, 416-304-3963),
#5) Macquarie Capital Markets (Daniel Greenspan, 416-848-3541),
#6) Paradigm Capital (David Davidson, 416-360-3642),
#7) RBC Capital Markets (Robin Kozar, 416-842-7861),
#8) Salman Partners (Ike Kaja, 416-360-5890),
#9) Stifel Nicolaus (Michael Scoon, 416-815-3121),
#10) TD Securities (Craig Miller, 416-982-2753),
#11) Raymond James (Adam Low, 416-777-4943),
#12) Desjardins Capital Markets (Jackie Przybylowski, 416-607-3092),
#13) Scotiabank (Mark Turner, 416-863-7484).

To raise our stock price, we expect our corporate officers to leave no stone unturned and to exhibit fire-in-the-belly. The relationships of companies to their markets make or break them. Because of our successes discovering gargantuan quantities of valuable metal ores, we should be enjoying success after success in the competition for investors. Instead, our stock price is appalling because we’re not facing the problem head on.

The company has lost the ability to go back to the capital markets to raise money, except in small lots, on abysmal terms. As well, following our present course, we will not have much of a future anyway. Because our stock is undervalued so many times over, we’re low-lying fruit to be devoured by the first hostile takeover bid that’s likely to materialize.

Join us in putting an end to the bland and colorless platitudes we’re being told, such as, “market conditions” are to blame. The remarkable thing we’ve discovered at “Shareholders for Accountability at Fancamp” is how so many different people can be so unified with one resolute mindset. Unanimously, we advocate the same systematic measures, which will restore the many tens of millions of dollars surrendered in lost market capitalization, for lack of a plan to defend our share price.

We’re eager to have you join our non-exclusive organization. As never before, shareholders and our corporate officers, together with investment financing institutions, have an important stake in our success. Not counting takeover schemers, there’s a convergence of interests to get Fancamp’s valuation where it belongs. We invite you to join the club.

Best regards.
Shareholders for Accountability at Fancamp.



P.S. So you can familiarize yourself with the reforms we have in mind, we’ve laid them out, as follows, as an Addendum.


Addendum
Reform #1 / Change the Mindset at the Executive Level.
The Directors need to act according to visualizing the company as being made up of Three Main Divisional Operations. All it takes is picturing this, as though it were written on a blackboard:

Operational Division #1 = Exploring for Metal Ore
Operational Division #2 = Arranging for the Monetization of Our Discoveries
Operational Division #3 = Rewarding Shareholders for Their Investment

So far as Operational Division #1: As a result of our excellent work, we’ve had many extraordinary successes. Right now, there’s no great urgency for much more.

So far as Operational Division #2: Our recent agreement with Champion exemplifies progress. Proving the economic feasibility of extracting saleable metals from Magpie’s titaniferous magnetite ore is our next priority.

So far as Operational Division #3: It is essentially dormant and non-functioning.

Obviously, the attention needs to be rebalanced. That is, shift it away from where it’s needed the least to where it’s needed the most. We cannot afford to leave Operational Division #3 the way it is. Leaving it broken is costing us tens of millions of dollars.

Reform #2 / Hire the Fulltime Investor Relations Manager.
At the heart of our investor-base-building initiatives will be a manager, on staff, who’ll have the responsibility of developing a list of Influential People at Investment Advisory Institutions. Our goal will be to make those key advisory people aware of us and, increasingly, arouse their curiosity.

According to experience, talent, and performance, the manager will have autonomy and authority. To keep us on track, “Shareholders for Accountability at Fancamp” will contribute (for free) the more-than-sufficient business-building expertise we have amongst our members. The beauty of this set up is the $100K to $150K cost per year, more or less, compared to the $1.09 million increase in our market capitalization we’ll be getting for each one cent increase in our share price.

Another way to look at this is according to the monetary value per phone conversation. Will one thousand in depth conversations and mailed information exchanges with influential investment advisors result in a one cent or greater increase in our share price? If so, the value of each phone call is $1090 or greater ($1.09 million divided by 1000). Naturally, if the 1000 calls result in a ten cents or greater share price uptick, the benefit per call would be $10,900 or greater.

Reform #3 / Identify Key Investor and Media Institutions.
To start, our IR Manager will compile a list of approximately 200 companies active in the investor community. This list will consist of prominent companies that provide research, analysis, information, and advice to investors. We will build strong relationships with the Investor Advisors, as each one becomes more and more familiar with us during our several conversations per year.

Most exploration companies of consequence, on their websites, typically list three to six investment companies under the heading “Analyst Coverage.” We will redefine what that means. Instead of being three to six in length, our list will be hundreds in length compared to its present length of zero. We will go from being in Last Place to being in First Place.

When it comes to “Analyst Coverage,” instead of the subject being an embarrassment, it will become our strength, as we will set new standards of excellence. Our list will grow to include every single desirable media publication and media outlet. It will target investment advisory firms, individual analysts, investment research companies, stock brokers, and selected investment bankers.

Reform #4 / Build the Book of Business.
Every organization we identify as a valued source of possible investor interest will be converted from being attractive but uninformed about us to being attractive and well informed. More and more, as we develop our list, its value will increase.

Our IR Manager will converse with the key investment people at every single one of the 200 companies we’re initially targeting. This will happen at a regular but not rigid pace of two per day, more or less. Information acquired, at our end, will be treasured. If we perform our job well, the information about us, at the other end, will be treasured as well.

Of course, when we’re shaking things up with a new venture, besides the anticipated questions, there will be unanticipated questions. We will correct course and change course according to what we learn and according to what we accomplish.

Our activities will be carefully planned and performed according to schedule but will leave modest scope for revision. The IR Manager, in concert with the shareholders, will track and monitor and document the daily progress.

Reform #5 / Improve the Quality of Our Business Relationships.
The IR Manager will converse regularly with the influential people initially reached earlier. We will get to know them. They will get to know all about us. There will be a greater and greater meeting of the minds after every conversation and after every exchange of information. We will treat our every business relationship with care and respect, as though the financial well-being of Fancamp’s shareholders hangs in the balance. It does.

Every investor advisor will be treated according to the progression of how our individualized relationship is evolving. The conversations we have will not be by rote. Different people have different interests. Differentiated literature will be mailed according to the common subjects of interest and according to the nature and the stage of the relationship. We will track statistically and otherwise an investment advisor’s client relationships and assist the investment advisor accordingly.

Keeping up with all this requires discipline and dedication. It requires keeping our eye on the ball. It requires the feedback we can only get from generating real-time or soon-after reports. We will learn how we’re doing as we’re doing it. There’s no substitute for actively tracking our progress. New investment advisory relationships are precious. By developing a bank of knowledge about our conversations with each investor advisor, we will put ourselves in the best position to make our case each time we follow-up.

Resulting from our planning, scheduling, and strategizing , we will begin accumulating advocates who trust us and who’ve taken the time to investigate us. In turn, our new friends will talk to their associates and to the investors who trust them. We will develop an educated and appreciative following. In the investment industry, there will be a proliferation of respected institutions and influential analysts and commentators who’ll have hard statistics to highlight the positive things they’re saying about us.

Reform #6 / Issue Regularly-Scheduled Website Progress Reports.
On a daily basis (even broken down by AM and PM), how many conversations did we have with Investment Advisory Firms? How many were first time? How many were follow-ups? What kind of literature do we need to prepare to reinforce our message? From what we’ve already mailed out, what’s the response? In general, what’s working? What’s not? How can we improve what we’re doing? Who’s writing us up in the industry media? When will the articles appear? Are we getting TV interviews? What are our outstanding successes?

We can summarize and describe much of this and put it on the Investor Section of our website. With pride and confidence, we can refer the Investor Advisors to that website page as well as the other pages where we update the information daily. Refresh the information regularly and they’ll keep coming back. Most of the time, confidentiality will not be an issue. So we shouldn’t make it one. Unless the conversation is “off-the-record,” we should post, as a matter of routine on our website, all the information we have of interest to present shareholders and future investors.

Reform #7 / Display Important Investment Information on Our Website.
Why aren’t we displaying what investors want to know? Yesterday, what were the closing spot prices for Titanium and Iron? During the trading day, what were the trading ranges of Champion and Argex stocks? How is the market valuing the reported resources (tonnages of metal ores) of our competitors compared to how it’s valuing our reported resources?

Dynamic content drives web traffic. We want people to keep coming back. We don’t want people to pay us a visit one time, look around, and never return. General industry information (which changes daily in interesting ways) should be tied together with Fancamp investor information (which changes daily in interesting ways).

We have the platform to drive web traffic our way. Why not use it? We have the platform to tie together our corporate officers, shareholders, retail investors, investment advisors, and people generally interested in the exploration and metal ores industries. Are we better off without these people? Are we better off sending them their separate ways?

To be continued.