MONEY TAKE OVER ATTEMPT BY WESTERN AUSTRALIAN SHAREHOLDERS
The independent directors, the Company’s largest shareholder and many of the larger shareholders strongly urge you to vote against an apparent grab for our money by a small number of apparently aligned shareholders in Western Australia. They are led by Dr Leon Pretorius who has tried several times to get a job with Krucible, and by others who in the past attempted to access our funds through deals that Krucible rejected.
To save your investments from people who have had nothing to do with the recent work which has saved Krucible and made it into a shining star of the junior explorers, all you have to do is sign and return the green proxy voting form.
Even if you already voted you can change your vote at any time before the close off time of 10:30 am on Sunday 9 November 2014. And of course voting is anonymous to others.
The Company believes that Dr Pretorius has misled and maybe deceived shareholders with misinformation he has purported to be fact, maybe in an effort to deliberately misinform you. Here are some facts showing Pretorius has misled shareholders:
- Dr Pretorius says he has no self interest in his petition to take over Allan Branch’s job, yet on at least three previous occasions, starting immediately after we announced we had $12m in the bank from an asset sale, he has specifically requested a position of one kind or another, and forwarded his CV. To see more, please click here for Independent Directors’ Statement.
- Dr Pretorius says Krucible has a serious problem, which is an incredulous misstatement. In fact the current team have taken Krucible from near insolvency (which would have lost all shareholder investments) to a wealthy company with numerous opportunities ahead of it. It is the almost unfathomable desire to have that success for himself and his cronies that seems to be the blinding objective of Dr Pretorius attack on our Company.
- Dr Pretorius has told shareholders that Allan has no mining and resources experience, and deliberately deletes the significant mining company management from Allan’s record. Allan turned around Creat Resource Holdings, Minecom International, has consulted to New York based resource investment houses, has consulted to the US Bureau of Mines and to The School of Mines in Golden Colorado.
- Dr Pretorius trivialises the past vast experience brought to Krucible by Allan Branch, a rich and consistent history of successful company turnarounds.
- At the same time it is difficult to impossible to verify any of the claims Dr Pretorius makes about his own past, because it is so old, so vague and so undocumented, except there appears to be a pattern of quickly entering and exiting companies before they collapse.
- Dr Pretorius incorrectly tries to give credit for the accomplishments of the current team at Krucible to the past manager who quit when the company was broke and who advised the board before his departure that there were no firm offers for funding on the table.
- Dr Pretorius says he has an alternative vision for Krucible, yet there is no plan, vision, idea or anything that resembles a plan in any document produced by him. He does not seem to understand the difference between a vision, the responsibility of the board, and a plan, the responsibility of the management.
- Dr Pretorius has tried a scare campaign over the current efforts to commercialise Krucible’s rare earths discoveries. Yet the fact is that with a total investment of less than $50,000, Krucible is on the verge of implementing a plan to become the first profitable non Chinese rare earths company and has an international visibility that was absent prior to Mr Branch.
- Dr Pretorius is himself obsessed with rare earths, at times denigrating the discoveries, other times attempting to say he can commercialise them, and forgetting that this is only the smallest part of Krucible’s three corporate activities. Our biggest endeavour is exploration for non rare earths such as base, precious and strategic metals on our fresh tenements. The third is the revenue generating acquisition agenda which if successful could lead to regular dividends for shareholders.
- Dr Pretorius seems to be unable to accept that opportunities he presented to Krucible, after thorough evaluation by the Company, each with a vested interest of his own, were rejected as not suitable.
- Dr Pretorius is now attacking anyone who does not agree with him, starting with Allan Branch, and then the Company’s Senior Geologist, and now the independent directors.
- Dr Pretorius criticises Mr Branch’s salary. He cannot be aware because no shareholder is privy to management information, that Allan accepted a salary which specifically stated on his appointment contract was below industry standards. At the same time he constantly ensured his staff were rewarded for their supreme efforts at turning Krucible’s fortunes.
- Dr Pretorius has presented Krucible’s share price in comparison with the All Ordinaries Index, which contains giant mining companies, technology companies, banks and is hardly an honest comparison. It is probably because Dr Pretorius knows that when compared with the other junior explorers using the Metals and Mining Index (XMM), Krucible is way above average. See the chart below.
To support the Company’s recommendations, all you have to do is sign and return the green proxy voting form.
To see our corrections to misleading statements by Dr Pretorius, please click here for our 25 October 2014 Statement.
To read the support statement from Krucible’s largest shareholder, please click here for Simon Husband’s Statement.
To see what the Independent Directors think of the takeover attempt, please click here for Independent Directors’ Statement.
Krucible entered a trading halt on Thursday 23 October 2014 at 1:14 pm pending the release to the market of a discovery announcement by the Company relating to recent exploration and current drilling on its Tobermorey tenement EL28170 in the Northern Territory.
Krucible releases audited financial statements and operational details in 2014 Annual Report. Krucible’s 3-part company development strategy is outlined showing our plans to ensure long term growth and sustainability as a modern “discovery and development company.” Financials highlight the successful cash position from our recent asset sale and the board’s cautious management and allocation of funds. The operations report emphasises that in a little over half a year since receiving the first budget in 2 years, Krucible’s geological team have conducted exploration on 9 of our 12 greenfield tenements, including lag and soil sampling, aerial surveying, drilling, biogeochemical analysis and reconnaissance trips. Analysis, interpretation and modelling have started to come through and results are being released to the market as we have them. Extensions to our rare earths are showing up and interesting results are appearing from our base and strategic metals exploration. The company’s progress in commercialising its rare earths is described in detail, particularly as to how the company will avoid the recent industry mistakes, and our exciting M&A activities are also summarised. The report illustrates what an exceptional achievement has been accomplished this year from your team, compared with the industry as a whole.
Krucible’s plans to be a profitable rare earths mining and processing company are progressing, as announced 10 October 2014. After several months of discussions, the technical and financial due diligence is under way under confidentiality of a Non Disclosure Agreement signed with an international rare earths company (which prefers to remain anonymous for the moment). These are of course very early stage activities which may lead to a potential mutual development project, but highlights the value of Krucible’s persistent international promotional activities. Turning Krucible’s rare earths activities into shareholder wealth is one of the three corporate growth strategies of the Company, with the other two being continued exploration and acquisition of a revenue generating mining company. Krucible’s rare earths plans revolve around the Company’s expert knowledge of rare earths pricing, innovative low cost processing technology to compete with Chinese production costs, and a JORC inferred resource ready to be mined on existing infrastructure.
Krucible’s copper exploration activities on its Diamantina tenements is in progress with drilling at Tobermorey (EL28170) and will soon move to Toomba (EPM15367), as announced to the ASX 3 October 2014. This year has seen aerial geophysical surveying over the Elstone prospect in July and ground sampling in May 2013 which identified lead, copper, silver and zinc anomalies. The Diamantina is only one of several current tenement regions actively being explored by Krucible’s geological team, but is of particular interest because it appears to relate to the north west trending Toomba Fault Zone and has copper/gold mineralisation similar to IOCG deposits like Tropicana and Olympic Dam.
Krucible is a successful and financially secure junior resources company. Even with the negative effect of the recent Pretorius petition, Krucible’s share price (ASX:KRB) has outperformed the Metals and Mining Index (ASX:XMM) which is the correct comparison of peers for junior explorers. KRB in red has grown about 20% and XMM in blue has lost around 20%. Krucible has an enviable history of discovery in phosphorus and heavy rare earth elements plus a proven ability to commercialise its discoveries. Listed on Australia’s main stock exchange since 2007, Krucible continues to explore for precious metals, base metals and strategic metals like strontium and rare earths, and is transitioning to be a combined exploration and mining company. Krucible has plans and expectations to ultimately enter joint ventures to develop mines on tenements in the mineral rich Mount Isa area of north western Queensland and elsewhere and has accelerated its exploration of established and greenfield tenements. Krucible has a very strong industry-based board and management, promoting aggressive value-added mining projects and strategies. We are actively seeking to acquire an operational mine needing help and suitable companies are invited to contact us.
Krucible is a successful and financially secure junior resources company. Even with the negative effect of the recent Pretorius petition, Krucible’s share price (ASX:KRB) has outperformed the Metals and Mining Index (ASX:XMM) which is the correct comparison of peers for junior explorers. KRB in red has grown about 20% and XMM in blue has lost around 20%.
Krucible has an enviable history of discovery in phosphorus and heavy rare earth elements plus a proven ability to commercialise its discoveries. Listed on Australia’s main stock exchange since 2007, Krucible continues to explore for precious metals, base metals and strategic metals like strontium and rare earths, and is transitioning to be a combined exploration and mining company. Krucible has plans and expectations to ultimately enter joint ventures to develop mines on tenements in the mineral rich Mount Isa area of north western Queensland and elsewhere and has accelerated its exploration of established and greenfield tenements. Krucible has a very strong industry-based board and management, promoting aggressive value-added mining projects and strategies. We are actively seeking to acquire an operational mine needing help and suitable companies are invited to contact us.