I see and hear your frustrations.
As a person with approx. 4,000,000 MMG and 1,000,000 DRV, I am also at a very high frustration level.
Work is progressing very well in Mexico and according to plan.
We are only drilling with 1 drill because we do not want to get ahead of the 4 full time geologists in the field and lose the drill because of standy. We waited over a year for it and do not want to see it go elsewhere and not know when we will get it back. The lab in Mexico is giving us very slow service. We are investigating a switch for better service based on recommendations made to us during PDAC.
Most critisism appears to be about Peru results. The directors of MMG are not the operators of the JV and therefore do not control the flow of results. The problem of part-time management running Duran and Peru has been an important issue with both boards. We recruited and hired an extremely qualified person to run Peru full-time working for no one else. It was not an easy task in this current market. We are furtunate to have someone experienced in Peru and experienced at the tasks that lay ahead to get to a 43-101 resource.
We recriuited Cary in January but he was unable to start until completing his commitments to Acero-Martin. An admirable quality in management worth waiting a little longer for.
As to my role, I am not a technical person. I have to rely on other people for technical support. The boards of DRV and MMG each have 2 excellent independant technical directors on the 2 technical committees. They are able and willing to assist Cary in his new role and he is very pleased at the level of technical support he can seek guidance from. Both boards met Cary during the PDAC to officially approve his appointment which we immediately announced.
Every director of MMG is very experienced and very well qualified to guide MMG into the future. I have removed my name from the directors running for re-election. My current goal is to put into place a course of action that will see MMG get its fair market value per share for Peru, which in my opinion is 40 to 50% of the DRV share price AND get some additional market value for our Mexico properties. This is why the proxy requests permission to split MMG into MMG Peru and MMG Mexico. I believe this will result in an increase in total value of 50% or more to the current MMG share price based on today's values which are obviously subject to increases both for Peru results and for Mexico results. The timeframe for this is within 2 to 3 months. MMG Newco will be Mexico and should trade for a minimum of the $0.25 historical MMG price before we had any attention for Peru. I expect it to be $0.35 to $0.50 based on less shares in Mexico Newco and more working caopital than in the historical MMG. Once this task has been successfully completed, my priority will be to recruit a replacement for me as President of MMG to direct the activities in Mexico. This has been my personal goal for the past several years. The tight personnel market in exploration has not made it an easy task. However, I feel that MMG Mexico Newco will be more attracttive and will make the task acheivable before the end of the current fiscal year.
The long and short of this message is that I will do what is best for the shareholders and the Company and step down from the board and appoint a replacement President all before the next AGM. The people that are looking to place themselves in charge have done this before in other companies. They are very opportunistic and have shown that they will do financings with their preferred list of clients at discounts allowed to market and with commissions as allowed by the regulatory bodies. We have always raised money at market or premium to market. We have not done exclusive brokered financings. Will they do a better job at promotion than I have; probably. Will they do what is in the best interest of ALL shareholders? Not based on their past record. They get in early and cheap. They promote. They sell. They move on to the next prey.
Please give us 1 more year to show you value.
Thank you.
George A Brown
President & CEO
MacMillan Gold Corp.