Check out the numbers...
Conrad Black - Conrad black renounced his Canadian citizenship so he could become Lord of Crossharbour. Now he can't be a hoser or get Timbits... BUH BYE!!!!!!
Crossharbour is the name of a neighbourhood as well as a subway stop on the Docklands light railway, near the Daily Telegraph building.
We need a Lord of Erlton or Stampede though...
In other news, cushy exit strategies for Miguel de la Campa, Robert Doyle, Jose Arata, and Peter Volk screw Bolivar Gold shareholders. ...
Scion Capital owns 15% of Bolivar Gold and they are pointing out some issues with Bolivar management (see letter below). Being in Argentina is a big liability but it appears that Bolivar's management will be well taken care off regardless.
Scion Capital controls roughly 15 per cent of Bolivar Gold's common shares, and we seek more information on the activities of Bolivar Gold management in their apparent dual roles as executives of CoalCorp, as well as the apparent dual role of Bolivar Gold's offices as headquarters of CoalCorp. We are particularly concerned about the implications for a possible conflict-of-interest affecting your negotiations with Gold Fields.
Specifically, it appears that you, Miguel de la Campa, Robert Doyle, Jose Arata, and Peter Volk -- the five named executive officers of Bolivar Gold -- each have relatively new and similar positions with CoalCorp.
All five of you have employment agreements with Bolivar Gold that provide for the payment of three times annual salary in the event of a change of control. Each of you would receive in excess of $500,000 in such a circumstance as a takeover.
Further, all five of you have phantom stock arrangements that result in payments to you -- only upon a takeover or substantial sale of the company -- as if you owned shares of Bolivar Gold with a zero-cost basis. This would amount to more than $10-million in payments split among you five should the Gold Fields transaction be consummated.
Such change-of-control payments seem unnecessary given that it appears Bolivar Gold management is orchestrating its own exit from Bolivar Gold and simultaneously starting up a new emerging markets natural resources company operated out of Bolivar Gold's own offices. I must wonder whether the board of directors considered shareholders' best interests when granting management such benefits.
Scion Capital questions the motives for management agreeing to the Gold Fields buyout offer amid so much recent market confusion and misunderstanding. Your initial willingness to seek an exemption from the independent valuation requirement as well as your rapid agreement to a $12-million breakup fee payable to Gold Fields, with no definitive agreement yet signed, require shareholders to have a better understanding of management's financial motivations.
Please clarify for your shareholders the nature of the Bolivar management team's interest in CoalCorp. In addition, shareholders would be interested in how you are allocating time and expenses between Bolivar Gold and CoalCorp, and why shareholders should be expected to sacrifice monetary value to management upon management's well-planned transition to running CoalCorp full time.
Dr. Michael J. Burry