This series, All the King's Men, casts a light on the dark corners of Newfoundland and Labrador politics. In most cases that involves the provincial PC Party, but not always. In fact, it's a mistake to think that one party is pure as the driven snow, while the other swims in corruption. The truth is that politics within the province is run by a very few - hence the name of this series. That group of people can swap their financial support around as conditions for them require, and capture the party they need to advance their agenda. In other words, the back room boys of the province.This post involves such a story, and the Liberal party of the province.
In 2011, Liberal leader Yvonne Jones was ill with breast cancer, and being treated with chemotherapy. Speculation ran rampant that she would be unable to lead the party in the 2011 general election. Yet, despite her condition, Jones insisted she would run. In July, 2011, an apparent attempt to have her step down in a deal put forward by Dean MacDonald was openly denied by both parties. http://www.polemicandparadox.com/2011/07/as-provincial-politicians-hit-summer.html
Despite her denials to the contrary, Jones resigned the next month with mere weeks left before the election was to be held. She left the party with a large debt, and no prospects for raising money to run an election campaign.
In the ensuing leadership contest, which amounted to executive board interviews of seven potential candidates, myself included, Kevin Aylward was chosen. Aylward had placed his name on the ballot approximately 20 minutes before the cut off to do so. Aylward, a former cabinet minister and president of Nunacor (a resource/mining arm of the Nunatukavut community in Labrador) was "lucky" enough to have former premier Brian Tobin step up, and hold a fund raiser for the provincial party in Toronto to help pay for the election. Leading up to this time, the provincial Liberals had fought tooth and nail to stop the Muskrat Falls project. However, all that was about to change as noted in an earlier post http://rocksolidpolitics.blogspot.ca/2012/05/muskratmines-and-railways-liberally.html
As the saying goes, to figure out the behind the scene machinations you need to follow the money trail, and this case was no different. When Tobin left public political life, and the spotlight of the cameras, he became immersed in the corporate world. Specifically mining in Labrador - among others. When he called a group together in Toronto for donations, to the provincial Liberals here, that influence was quite obvious. Here are the people/companies that answered Tobin's call:
AECON Construction Group Inc
$10,000.00
Tobin sits on the board of directors of AECON, a large international construction company. However, AECON is also on the bidding list for construction of Alderon's Kami mine project:
Mine pit development, and tailings dam.
Municipal Enterprises Limited
$10,000.00
Municipal Enterprises owns Municipal Construction, which in turn owns Dexter. Dexter is bidding on Alderon's Kami mine project as well:
Bid 1 Clearing, grubbing mining, and maintenance areas and construction access; and
Bid 2 Mine pit development and tailings dam.
Sam Bharti
$10,000.00
"Sam" Bharti, as listed on the contribution list of the province, is actually "Stan" Bharti, owner of Forbes and Manhattan Group of Toronto, and the main driving force behind the creation of Alderon and the Kami project.
Bernard Wilson
$1,000.00
Wilson is a Forbes and Manhattan man, and sits on a number of its companies boards: Aberdeen International; Avion Gold; and Valencia Ventures Inc.
John Vettesse
$10,000.00
Vettesse is a partner with Cassells Brock law firm in Toronto, and a director/shareholder of Alderon.
Gemma Communications
$10,000.00
Gemma Communications is a subsidiary of Tuckamore Capital Management run by Dean MacDonald.
Magna International
$5,000.00
Tobin served as Vice-Chair and director of Magna.
Norvista Resources
$10,000.00
Norvista is a mining resource company out of Toronto that Tobin sat on the board of.
Energizer Resources
$5,000.00
Energizer is a mining resource company out of Toronto that Tobin was Chair of its Special Advisory Committee and a shareholder.
John Marinucci
$1,000.00
Toronto businessman, friend and former class mate of Tobin.
Vincent Sardo
$1,000.00
Toronto businessman, and director of Thompson Consolidated Iron Mine - which Tobin ran.
GMP Securities
$2,000.00
Toronto financial company that represented Alderon in securing its financing agreement with Hebei Steel of China for the Kami Mine project.
Douglas Bell
$4,000.00
Vice Chair and Co-Head of Investment Banking at GMP Capital - the parent company of GMP Securities, which acted for Alderon with the Chinese.
George Albino
$2,000.00
Gold and Precious Metals Expert, GMP Securities.
Roy D'Ambrosio
$2,000.00
"Roy" as listed on the contribution list of the province, is actually "Roy". Managing Director of GMP Securities.
NOTE - Combined totals of GMP and its officers is $10,000.00 - which mirrors the others.
BMO Nebitt Burns Inc
$5,000.00
Tobin currently sits as Vice-Chair, significant institutional owner of Alderon shares, bank for the Innu Trust Fund, Labrador.
Jason M. Attew
$1,500.00
Director, Global Metals and Mining, BMO Capital Markets.
William Butt
$2,000.00
Head of Investment and Commercial Banking BMO (now retired).
John Sabine
$1,500.00
Lawyer at Bennett Jones in Toronto - Mining, Finance and Mergers. Sits on the boards of a number of mining companies.
On the face of it, one could say Tobin came to the rescue and saved the provincial Liberal party from a dim financial performance in the 2011 election. Certainly that is the view of some. However, there is also another side to this equation.
For starters, Yvonne Jones suddenly became a proponent of the Muskrat Falls project and its use for mining companies in Labrador. She also became a big cheerleader for developing mining companies in Labrador, and even a proponent of a Labrador railway (which is necessary for Labrador mines to ship their products to Quebec ports for export). Is that all a coincidence? It certainly represented a sudden and major shift in her public stances. To this day, and despite the fact she is a federal MP now, Jones frequently interjects on matters that are considered provincial affairs in Labrador, and they often involve mining and power in Labrador.
The Liberal Party itself has substantially toned down its opposition to the Muskrat Falls project, and has also been a major proponent of mining developments in Labrador. All of this begs an obvious question: Did political contributions change the tune of the provincial Liberal Party? It's hard to say. You can judge for yourself. This series has focused on the influence of corporate donations to political parties in the province, and in my opinion this particular case is no different than any of the others. As Stan Bharti, the head of Forbes and Manhattan and donor above, once said:
"To minimize risk, we do two things. We always have a very strong local presence. Local people, local officers, local connections. We also make sure that at a political level we have some good connections... I sometimes tell people you can either buy political insurance, or you can have a good local person."
To Dwight Ball, the new leader of the Liberal Party's credit, he promised to introduce political donation reform as part of a democratic reform package for the Party in the 2015 general election. Ridding the province of corporate and union donations is the only way to clean up our democratic system here. It is long overdue. It is banned at the federal level, and is only allowed in three of ten provinces. Ridding ourselves of this will alleviate the need for companies to, as Bharti says:
"buy political insurance."
Showing posts with label Forbes and Manhattan. Show all posts
Showing posts with label Forbes and Manhattan. Show all posts
Friday, May 30, 2014
Sunday, October 14, 2012
Expose Alderon Iron Ore Corp - the conclusion
2010 ended with Alderon being in its best cash shape ever. It had $24,376,060.00 in the bank, but a ballooning deficit that reached $32,347,749.00 by year's end. It incurred $4.6 million in administration expenses alone. Rougly $1.3 million went to the Exploration Group(Forbes West)alone. This covered rents, wages, and investor relations among many things. Alderon at this point had almost no staff of its own, and was billed for all these expenses. This, despite the fact that Alderon had only two "offices" at this time: one in Toronto that was in reality the office of Black Iron (Forbes and Manhattan company); and one in Vancouver that belonged to the Exploration Group (Forbes and Manhattan). In addition, large personal contracts for management were signed between Alderon and Forbes and Manhattan interests. The sole primary, physical asset the company had, other than the mine deposit, was a $180,000.00 trailer in Labrador.
2011 was a busy and transforming year for the company. Under the new Forbes and Manhattan direction the company moved ahead with exploration on the Kami site. The company was audited by Revenue Canada for its GST/HST return from April to June, 2011. In September, 2011, the "Forbes Fee" (Forbes and Manhattan)was increased to $40,000.00 per month, plus expenses, from the previous $10,000.00 per month. On a side note, the "Forbes Fee" also provided a lump sum payment of 36 months worth of fees should a change of control result in Mr. Stan Bharti leaving. Exploration Group (now Forbes West) had a contract to provide services and facilities to the company at cost plus 15%. 2011 also witnessed Alderon's stock graduate from the TSX to the TSE - at $2.67 per share.
2011 also marked the year when Alderon started to get a distinct political flavour. Gary Norris, recently retired Clerk of the Executive Council under Danny Williams, signed a personal services contract with Alderon to become Executive Vice-President of Government and Community affairs (after only 7 months from leaving the government). Shortly afterward, Todd Burlingame left Nalcor to become Alderon's Executive Vice-President of Environment and Aboriginal Affairs - a similar position he held at Nalcor.
On September 30, 2011 Alderon's name changed one more time - Alderon Iron Ore Corp. This time there was no reverse share split. Not to be outdone by his former staff, Danny Williams himself was hired onto Alderon with a consulting contract, as Strategic Advisor to the Chairman, on December 22, 2011. His long time communications director while Premier, and confidante Elizabeth Matthews was hired on the same day as a Communications Consultant.
Alderon also hired on 52380 Newfoundland and Labrador Inc to be a consultant for railway development to the mine. 52380 was incorporated September 7, 2005. It was ammended twice and lapsed, but brought back to life again. The company shows two directors - Greg Mercer, and his wife. Mercer served as Special Assistant to Brian Tobin, Fisheries Minister from 1994-1996. In September, 2000 he challenged Gerry Byrne, with the backing of provincial Liberals, for the federal Liberal nomination. He lost, and by November 2000, he was appointed Senior Policy Advisor at Industry Canada under then Minister responsible - Brian Tobin. Mercer is a federally registered lobbyist, and shows Tobin's/Forbes and Manhattan's Consolidated Thompson as his one registered client. He was hired three days after Danny Williams joined Alderon's Board of Directors.
While it was a busy year for Alderon, it was also the most expensive by far. They finished the year down to $7,759,933.00 in the bank and a massive $68,790,827.00 deficit(more than double the year before,and six times the year befor that). Key management personnel received $10,914,462.00 in renumeration. Other big tickets included: $3,567,604 in salaries and benefits; $15,182,005.00 in general and administrative expenses; $21,201,210 in exploration and evaluation expenses; $10,574,640.00 in share based compensation; $1,625,232.00 to Forbes West; and $2,926,997.00 in consulting, professional and legal fees. So much was spent that the company lost $37,506,618.00 on operations in 2011. A year that was very rewarding for insiders, but expensive for the shareholders.
January, 2012 started with a big financial shot in the arm for Alderon when Liberty Metals & Mining Holdings,LLC, a susidiary of Liberty Mutual(USA)took a major position in the company. Liberty pumped $39,999,999.00, less transaction costs of $2,626,000.00, into Alderon in exchange for 14,981,273 shares at $2.67 each - 15% of the company. It was significant as an investment for the credibility it lent Alderon, and of course the cash. Altius was diluted down to 34% opwnership.
On February 23, 2012, Alderon established a detailed Code of Ethics which was a significant departure from the practises of the old days within the company.
On March 28, 2012 Danny Williams joined the Board of Directors. It was an interesting choice as all other members of the Board represented significant shareholders.
On April 13, 2012, the news that Alderon had been praying for was announced. Hebei Iron & Steel Group (China) agreed to purchase 19.9% of Alderon and a 25% stake in a new partnership that was to be established to own the Kami project, for $194-million.
Hebei was to initially buy a near 20-per-cent stake in the Canadian company for $88.3 million at $3.42 a share, or a 0.6-per-cent discount to the day's closing price. Following that, Hebei would invest $105.7-million, giving it the right to a 25-per-cent interest in Kami. The deal also gave Hebei the right to buy 60 per cent of the iron ore produced annually from Kami. Hebei agreed to try and assist in obtaining debt financing for the Kami project from Chinese banks. GMP Securities was Alderon’s financial adviser on the deal and Bank of America Merrill Lynch acted as Hebei’s financial adviser. In a note of interest, the agreement states there were no "finders" except Cuda International Ltd. and GMP Securities L.P. The troubling part of this statement is almost no information exists on a "Cuda International Ltd". The announcement did say that the price per share was discounted 6% from the day's trading price. That may indicate a 6% pay out, or part thereof, to Cuda International Ltd.That represents about $11,440,000.00. There is certainly no record of payments it may have received due to its involvement in this transaction. The only firm of record close to that name the author could find was Cuda Capital Corp, now August metal - previously owned by Reza Mohammed. That's not to say it was the same firm, but the issue is clouded.
On August 9, 2012, Alderon added a significant piece to its infrastructure puzzle by entering into a Port Agreement with the Port of Sept-Ile. The agreement was for 8 miliion tonnes of ore to be shipped annually (although Alderon's plans call for double that ammount). The cost to expand the Port was pegged at $220,000,000.00, and Alderon was required to put in $20.46 million in two payments - $10.23 million on signing and $10.23 no later than July 1, 2013 (interestingly, the federal government added $55 million in as well). Alderon was also required to put up an irrevocable guarantee of the equivalent value. The deal was for 20 years with a 5 year option. Alderon would recieve a discounted rate for shipping until its initial pay-in had been discounted back to the company. Alderon apparently did not have the money for its share, so it turned to Liberty Metals. Liberty provided bridge financing for the first $10.23 million payment, securing it with a mortgage against the Kami project with an 8% interest tag, and promised to front the second half if it was required.
On August 13, 2012 Alderon joined CN Rail's feasability study to develop a rail line from Sept-Ile through to northern Quebec as part of the Quebec government's Plan Nord.
Alderon's stock hit a high of $3.83 on February 22,2012, but started to slide badly from that point on. By late August, 2012 it was at $2.45 per share, a $.97 (32%) drop from the price Hebei had agreed to pay per share. On August 31, 2012, pursuant to the terms of the subscription agreement (as amended) (the "Subscription Agreement"), Hebei acquired 25,858,889 Common Shares at a price of C$2.41 per Common Share for gross proceeds to the Company of approximately C$62.3 million, representing 19.9% of the issued and outstanding Common Shares. Hebei was permitted to change its price per share offering in accordance with a section in the original agreement that gave it flexibility should the value of the Alderon change between the initial signing in April, and the final signing. Concurrent with the Hebei closing, Liberty Metals & Mining Holdings acquired 3,816,181 Common Shares at a price of C$2.41 per Common Share for gross proceeds to the Company of approximately C$9.2 million, allowing LMM to maintain its relative proportionate interest in Alderon. Also concurrent with the Hebei closing, Alderon repayed the $10.5 million bridge loan previously advanced by LMM. Altius also had a pre-emptive right to purchase shares to keep its percentage ownership of Alderon, but apparently did not. The dilution left them at about 25% ownership.
An interesting part of the Hebei Agreement is the formation of a seperate entity to own the Kami project. It appears the old Privco company (0860132 BC Ltd) Mark Morabito used to buy the interest in Kami from Altius may now be the shell company used as this seperate entity. The Agreement awardes 75% ownership to Alderon, and 25% to Hebei. The exact details of the take-off agreement are confidential, but it does remove Kami from Alderon's direct ownership. It also restricts the number of directors in the new company which would tend to benefit Hebei. It does free Alderon up to pursue other mining developments that it may try and capitalize without jeopardizing the financial health of the Kami interest. It may also reduce the over all value of Alderon in the near and long term. Ms. Zheng Liangjun and Mr. Tian Zejun were appointed to Alderon's Board of Directors and, as has been the practise, Stan Bharti of Forbes and Manhattan left the Board - although he kept his lucrative consulting contract. Alderon and Hebei were required to contribute to capital expenditures for the development of the Kami Project not covered by initial capital contributions and project debt financing, in accordance with their respective interests. That leaves it to Alderon to come up with 75% of the projected $1 billion to bring Kami into production. There is a note in the agreement that Hebei, a state owned corporation, would try and facilitate borrowing from two Chinese banks to fund Kami, but no requirement that the funding is mandatory.
In September 2012, Alderon submitted its Environmental Impact Study (EIS) for the Kami project. It outlines a number of challenges facing the development. One such challenge is electrical power. It calls for a new line to built from the Upper Churchill facility that it estimates will cost Nalcor $150,000,000.00 to build. Curiously, it also outlines the use of hydro power and oil-fired power at Kami. The EIS states aproximately one third of the power needed to run Kami at its original output of 8 million tonnes per year would be produced by oil fired generators. The reason given was it was cheaper to use the oil fired generators. This is fascinating when you consider the provincial government's primary purpose for Muskrat Falls was to generate green power and replace Holyrood. The author of that strategy, Danny Williams, now sitting on Alderon's board, is actively involved in promoting the use of oil fired generators, because they are cheaper than electricity. But, I digress.
Alderon's future as a company appears speculative at best. Its stock is now down to $1.73 on the TSX and $1.76 on the NASDAQ. Its cumlative worth has dropped about 60% in the last seven months. China, Alderon's main partner, is facing large over supply issues with iron ore and a slowing economy - domestically and internally. The ore to be produced at Kami cannot be sold in most markets except China due to its make up. So, Alderon and Kami remain almost completely reliant on the whims of China for their success as a company. As Alderon found out, when the original agreement was ammended to drop share purchase prices by Hebei, China has them in a position where they have very few options.
In the end, Alderon remains essentially a "promoter" type company - not unlike its earlier days. It was set up to take an asset, promote it, "de-risk" it, and then allow someone to take it over. That's the way Forbes and Manhattan rolls, and this one is not much different. Forbes group will not take this project to production themselves. We will likely see the same in the projects that Forbes and Manhattan, and Forbes West, are currently involved in within Newfoundland and Labrador: Cap Ex; Ridgemont Iron Ore Corp; Cross Hair Energy Corporation; and Castillian Resources (Hope Brook Gold Project, located in southwestern Newfoundland).
2011 was a busy and transforming year for the company. Under the new Forbes and Manhattan direction the company moved ahead with exploration on the Kami site. The company was audited by Revenue Canada for its GST/HST return from April to June, 2011. In September, 2011, the "Forbes Fee" (Forbes and Manhattan)was increased to $40,000.00 per month, plus expenses, from the previous $10,000.00 per month. On a side note, the "Forbes Fee" also provided a lump sum payment of 36 months worth of fees should a change of control result in Mr. Stan Bharti leaving. Exploration Group (now Forbes West) had a contract to provide services and facilities to the company at cost plus 15%. 2011 also witnessed Alderon's stock graduate from the TSX to the TSE - at $2.67 per share.
2011 also marked the year when Alderon started to get a distinct political flavour. Gary Norris, recently retired Clerk of the Executive Council under Danny Williams, signed a personal services contract with Alderon to become Executive Vice-President of Government and Community affairs (after only 7 months from leaving the government). Shortly afterward, Todd Burlingame left Nalcor to become Alderon's Executive Vice-President of Environment and Aboriginal Affairs - a similar position he held at Nalcor.
On September 30, 2011 Alderon's name changed one more time - Alderon Iron Ore Corp. This time there was no reverse share split. Not to be outdone by his former staff, Danny Williams himself was hired onto Alderon with a consulting contract, as Strategic Advisor to the Chairman, on December 22, 2011. His long time communications director while Premier, and confidante Elizabeth Matthews was hired on the same day as a Communications Consultant.
Alderon also hired on 52380 Newfoundland and Labrador Inc to be a consultant for railway development to the mine. 52380 was incorporated September 7, 2005. It was ammended twice and lapsed, but brought back to life again. The company shows two directors - Greg Mercer, and his wife. Mercer served as Special Assistant to Brian Tobin, Fisheries Minister from 1994-1996. In September, 2000 he challenged Gerry Byrne, with the backing of provincial Liberals, for the federal Liberal nomination. He lost, and by November 2000, he was appointed Senior Policy Advisor at Industry Canada under then Minister responsible - Brian Tobin. Mercer is a federally registered lobbyist, and shows Tobin's/Forbes and Manhattan's Consolidated Thompson as his one registered client. He was hired three days after Danny Williams joined Alderon's Board of Directors.
While it was a busy year for Alderon, it was also the most expensive by far. They finished the year down to $7,759,933.00 in the bank and a massive $68,790,827.00 deficit(more than double the year before,and six times the year befor that). Key management personnel received $10,914,462.00 in renumeration. Other big tickets included: $3,567,604 in salaries and benefits; $15,182,005.00 in general and administrative expenses; $21,201,210 in exploration and evaluation expenses; $10,574,640.00 in share based compensation; $1,625,232.00 to Forbes West; and $2,926,997.00 in consulting, professional and legal fees. So much was spent that the company lost $37,506,618.00 on operations in 2011. A year that was very rewarding for insiders, but expensive for the shareholders.
January, 2012 started with a big financial shot in the arm for Alderon when Liberty Metals & Mining Holdings,LLC, a susidiary of Liberty Mutual(USA)took a major position in the company. Liberty pumped $39,999,999.00, less transaction costs of $2,626,000.00, into Alderon in exchange for 14,981,273 shares at $2.67 each - 15% of the company. It was significant as an investment for the credibility it lent Alderon, and of course the cash. Altius was diluted down to 34% opwnership.
On February 23, 2012, Alderon established a detailed Code of Ethics which was a significant departure from the practises of the old days within the company.
On March 28, 2012 Danny Williams joined the Board of Directors. It was an interesting choice as all other members of the Board represented significant shareholders.
On April 13, 2012, the news that Alderon had been praying for was announced. Hebei Iron & Steel Group (China) agreed to purchase 19.9% of Alderon and a 25% stake in a new partnership that was to be established to own the Kami project, for $194-million.
Hebei was to initially buy a near 20-per-cent stake in the Canadian company for $88.3 million at $3.42 a share, or a 0.6-per-cent discount to the day's closing price. Following that, Hebei would invest $105.7-million, giving it the right to a 25-per-cent interest in Kami. The deal also gave Hebei the right to buy 60 per cent of the iron ore produced annually from Kami. Hebei agreed to try and assist in obtaining debt financing for the Kami project from Chinese banks. GMP Securities was Alderon’s financial adviser on the deal and Bank of America Merrill Lynch acted as Hebei’s financial adviser. In a note of interest, the agreement states there were no "finders" except Cuda International Ltd. and GMP Securities L.P. The troubling part of this statement is almost no information exists on a "Cuda International Ltd". The announcement did say that the price per share was discounted 6% from the day's trading price. That may indicate a 6% pay out, or part thereof, to Cuda International Ltd.That represents about $11,440,000.00. There is certainly no record of payments it may have received due to its involvement in this transaction. The only firm of record close to that name the author could find was Cuda Capital Corp, now August metal - previously owned by Reza Mohammed. That's not to say it was the same firm, but the issue is clouded.
On August 9, 2012, Alderon added a significant piece to its infrastructure puzzle by entering into a Port Agreement with the Port of Sept-Ile. The agreement was for 8 miliion tonnes of ore to be shipped annually (although Alderon's plans call for double that ammount). The cost to expand the Port was pegged at $220,000,000.00, and Alderon was required to put in $20.46 million in two payments - $10.23 million on signing and $10.23 no later than July 1, 2013 (interestingly, the federal government added $55 million in as well). Alderon was also required to put up an irrevocable guarantee of the equivalent value. The deal was for 20 years with a 5 year option. Alderon would recieve a discounted rate for shipping until its initial pay-in had been discounted back to the company. Alderon apparently did not have the money for its share, so it turned to Liberty Metals. Liberty provided bridge financing for the first $10.23 million payment, securing it with a mortgage against the Kami project with an 8% interest tag, and promised to front the second half if it was required.
On August 13, 2012 Alderon joined CN Rail's feasability study to develop a rail line from Sept-Ile through to northern Quebec as part of the Quebec government's Plan Nord.
Alderon's stock hit a high of $3.83 on February 22,2012, but started to slide badly from that point on. By late August, 2012 it was at $2.45 per share, a $.97 (32%) drop from the price Hebei had agreed to pay per share. On August 31, 2012, pursuant to the terms of the subscription agreement (as amended) (the "Subscription Agreement"), Hebei acquired 25,858,889 Common Shares at a price of C$2.41 per Common Share for gross proceeds to the Company of approximately C$62.3 million, representing 19.9% of the issued and outstanding Common Shares. Hebei was permitted to change its price per share offering in accordance with a section in the original agreement that gave it flexibility should the value of the Alderon change between the initial signing in April, and the final signing. Concurrent with the Hebei closing, Liberty Metals & Mining Holdings acquired 3,816,181 Common Shares at a price of C$2.41 per Common Share for gross proceeds to the Company of approximately C$9.2 million, allowing LMM to maintain its relative proportionate interest in Alderon. Also concurrent with the Hebei closing, Alderon repayed the $10.5 million bridge loan previously advanced by LMM. Altius also had a pre-emptive right to purchase shares to keep its percentage ownership of Alderon, but apparently did not. The dilution left them at about 25% ownership.
An interesting part of the Hebei Agreement is the formation of a seperate entity to own the Kami project. It appears the old Privco company (0860132 BC Ltd) Mark Morabito used to buy the interest in Kami from Altius may now be the shell company used as this seperate entity. The Agreement awardes 75% ownership to Alderon, and 25% to Hebei. The exact details of the take-off agreement are confidential, but it does remove Kami from Alderon's direct ownership. It also restricts the number of directors in the new company which would tend to benefit Hebei. It does free Alderon up to pursue other mining developments that it may try and capitalize without jeopardizing the financial health of the Kami interest. It may also reduce the over all value of Alderon in the near and long term. Ms. Zheng Liangjun and Mr. Tian Zejun were appointed to Alderon's Board of Directors and, as has been the practise, Stan Bharti of Forbes and Manhattan left the Board - although he kept his lucrative consulting contract. Alderon and Hebei were required to contribute to capital expenditures for the development of the Kami Project not covered by initial capital contributions and project debt financing, in accordance with their respective interests. That leaves it to Alderon to come up with 75% of the projected $1 billion to bring Kami into production. There is a note in the agreement that Hebei, a state owned corporation, would try and facilitate borrowing from two Chinese banks to fund Kami, but no requirement that the funding is mandatory.
In September 2012, Alderon submitted its Environmental Impact Study (EIS) for the Kami project. It outlines a number of challenges facing the development. One such challenge is electrical power. It calls for a new line to built from the Upper Churchill facility that it estimates will cost Nalcor $150,000,000.00 to build. Curiously, it also outlines the use of hydro power and oil-fired power at Kami. The EIS states aproximately one third of the power needed to run Kami at its original output of 8 million tonnes per year would be produced by oil fired generators. The reason given was it was cheaper to use the oil fired generators. This is fascinating when you consider the provincial government's primary purpose for Muskrat Falls was to generate green power and replace Holyrood. The author of that strategy, Danny Williams, now sitting on Alderon's board, is actively involved in promoting the use of oil fired generators, because they are cheaper than electricity. But, I digress.
Alderon's future as a company appears speculative at best. Its stock is now down to $1.73 on the TSX and $1.76 on the NASDAQ. Its cumlative worth has dropped about 60% in the last seven months. China, Alderon's main partner, is facing large over supply issues with iron ore and a slowing economy - domestically and internally. The ore to be produced at Kami cannot be sold in most markets except China due to its make up. So, Alderon and Kami remain almost completely reliant on the whims of China for their success as a company. As Alderon found out, when the original agreement was ammended to drop share purchase prices by Hebei, China has them in a position where they have very few options.
In the end, Alderon remains essentially a "promoter" type company - not unlike its earlier days. It was set up to take an asset, promote it, "de-risk" it, and then allow someone to take it over. That's the way Forbes and Manhattan rolls, and this one is not much different. Forbes group will not take this project to production themselves. We will likely see the same in the projects that Forbes and Manhattan, and Forbes West, are currently involved in within Newfoundland and Labrador: Cap Ex; Ridgemont Iron Ore Corp; Cross Hair Energy Corporation; and Castillian Resources (Hope Brook Gold Project, located in southwestern Newfoundland).
Monday, October 8, 2012
Expose Alderon Iron Ore Corp - Part 2
Alderon entered 2009 as essentially a shell company, and heavily under the influence of Forbes and Manhattan. Enter the Exploration Group, head quartered in Vancouver (run by Mark Marabito), and Altius Minerals of Newfoundland and Labrador. The Exploration Group was shown until recently as a Forbes and Manhattan company. In February, 2012 the Exploration Group made that association clearer by rebranding itself as Forbes West. Forbes and Manhattan's, and Exploration Group's earliest success in Newfoundland and Labrador was launching Brian Tobin's Thompson Consolidated iron ore mine in Labrador. Their other project with a long hisory in the province is Cross Hair Exploration - a uranium exploration company. They were behind the eight ball developing their uranium project compared to fellow promoters Altius.
Altius, incorporated in Alberta on March 5, 1997, traded on the Alberta Stock Exchange, and then the TSX(1999) and TSE(2007). Altius created Aurora Energy in 2003 with Australian, Fronteer Development Group to develop uranium prospects. Australia's Paladin Energy Ltd now owns Aurora with Altius holding shares and a 2% gross sales royalty. On June 23, 2008 Altius announced an agreement to jointly develop its Kami project in Labrador with Norvista Resources Corporation, a Brian Tobin interest. The joint effort failed to produce and Altius turned to Mark Morabito.
Morabito formed a shell company, 0860132 BC Ltd (Privco) and entered into an agreement with Altius known as the Privco - Altius Option Agreement. Essentially, it had the following elements:
1.) Privco gained the right to a 100% interest in the Kami project;
2.) Privco had to assign that option to a mutually agreed public company listed on the TSX or TSE;
3.) Meet seperate exploration funding targets of $1 million and $5 million within a year at the Kami site;
4.) Altius was to receive a 3% gross sales royalty; and
5.) Altius was to receive 50% of the shares in the public company.
The deal was announced on November 2, 2009. On Decenber 3, 2009 a private placement of 10,000,000 shares was issued by Alderon at $.15 per share. The offering was carried out by Delano Capital Corp, owned by Julian Bharti - Stan Bharti's son, and Axeman Capital Corp, which had a history of brokering offerings for Forbes and Manhattan companies. On December 8, 2009 the Annual Meeting of Alderon authorized a 2 for 1 reverse share split as required by the Privco sale agreement. On December 16, 2009, barely one month after the Altius Option was announced, Mark Morabito announced he had entered into an agreement to sell Privco to Alderon.
2009 was a transitional year for the company as it entered the Forbes and Manhattan fold as a shell company with a future purpose. Its annual financial statement for the year showed a cash balance of $4,920.00 and an accumulated deficit of $20,631,963.00. It was now in the hands of Emprise Capital for the apparent purpose of rescuing it to the point that it could be functional - even as just a shell company. Emprise was to receive 3,500,000 shares as compensation for debts owed to it by the company. The company had reached such a low point that on June 30, 2009 a cease trade order was issued by the BC Securities Commission for failure to provide audited financial statements. The order was revoked upon their submission on August 13, 2009. Alderon was ready for a change for the better. That started in 2010.
On January 15, 2010 Alderon issued another private placement of 10,000,000 shares - this time at $1.00 per share. Delano Capital was again a broker on this placement, as was Axeman Resources Capital and PI Financial Corp. http://tinyurl.com/9raoa5x
On January 19, 2010 Alderon completed another requirement of the Privco purchase and replaced its entire board with the Forbes and Manhattan team: Out - Jeff Durno, Robert Chisholm, Aron Buchman and Craig Goldenberger; and In were - Mark Morabito, Stan Bharti, Bruce Humphrey, Brad Boland and Patrick Gleeson. In addition, Altius as the controlling shareholder gained the right to name three members to the board, but chose to name two - John A Baker, and Brian Dalton. On February 19, 2010 Alderon listed on the American NASDAQ exchange.
On March 3, 2010 the Privco/Alderon deal was completed. Mark Morabito received 5,000,000 post consolidation shares in Alderon for acting as essentially the middleman between Alderon and Altius. Altius received 31,778,081 post consolidated shares, and a controlling interest in Alderon. Alderon also agreed to fund exploration on the Kami project of $1 million in the first year and $5 million in total in the first two years http://tinyurl.com/9kvrmhn . Altius had already completed aerial reconnaissance on the Kami project in 2006-2007, but there remained drilling, etc ahead.
On November 26, 2010 Alderon announced a private placement of 7,300,000 share units http://tinyurl.com/9sc4mrf . The price per unit was $2.20 and entitled the holder to a warrant of one common share and one half a common share exercisable at $2.80 for a period of 24 months from the closing of the offering. The original offering was valued at $16,060,000.00 with an additional over-allotment option of upto $4,015,000.00. The Alderon press release named Haywood Securities as the lead underwriter. However, Delano Capital Corp, owned by Stan Bharti's son, claims to have conducted the transaction: 9,125,000 units at $2.20 per unit for $20,075,000.00. The press release states there is a 6% commission, so one could assume the return for Delano Capital Corp would have to be around $1,204,500.00. The purchaser of these share units remains confidential.
In Part 3 of this series the Americans and the Chinese arrive at Alderon; Alderon gets political; and Muskrat Falls gains a new champion in Alderon.
Altius, incorporated in Alberta on March 5, 1997, traded on the Alberta Stock Exchange, and then the TSX(1999) and TSE(2007). Altius created Aurora Energy in 2003 with Australian, Fronteer Development Group to develop uranium prospects. Australia's Paladin Energy Ltd now owns Aurora with Altius holding shares and a 2% gross sales royalty. On June 23, 2008 Altius announced an agreement to jointly develop its Kami project in Labrador with Norvista Resources Corporation, a Brian Tobin interest. The joint effort failed to produce and Altius turned to Mark Morabito.
Morabito formed a shell company, 0860132 BC Ltd (Privco) and entered into an agreement with Altius known as the Privco - Altius Option Agreement. Essentially, it had the following elements:
1.) Privco gained the right to a 100% interest in the Kami project;
2.) Privco had to assign that option to a mutually agreed public company listed on the TSX or TSE;
3.) Meet seperate exploration funding targets of $1 million and $5 million within a year at the Kami site;
4.) Altius was to receive a 3% gross sales royalty; and
5.) Altius was to receive 50% of the shares in the public company.
The deal was announced on November 2, 2009. On Decenber 3, 2009 a private placement of 10,000,000 shares was issued by Alderon at $.15 per share. The offering was carried out by Delano Capital Corp, owned by Julian Bharti - Stan Bharti's son, and Axeman Capital Corp, which had a history of brokering offerings for Forbes and Manhattan companies. On December 8, 2009 the Annual Meeting of Alderon authorized a 2 for 1 reverse share split as required by the Privco sale agreement. On December 16, 2009, barely one month after the Altius Option was announced, Mark Morabito announced he had entered into an agreement to sell Privco to Alderon.
2009 was a transitional year for the company as it entered the Forbes and Manhattan fold as a shell company with a future purpose. Its annual financial statement for the year showed a cash balance of $4,920.00 and an accumulated deficit of $20,631,963.00. It was now in the hands of Emprise Capital for the apparent purpose of rescuing it to the point that it could be functional - even as just a shell company. Emprise was to receive 3,500,000 shares as compensation for debts owed to it by the company. The company had reached such a low point that on June 30, 2009 a cease trade order was issued by the BC Securities Commission for failure to provide audited financial statements. The order was revoked upon their submission on August 13, 2009. Alderon was ready for a change for the better. That started in 2010.
On January 15, 2010 Alderon issued another private placement of 10,000,000 shares - this time at $1.00 per share. Delano Capital was again a broker on this placement, as was Axeman Resources Capital and PI Financial Corp. http://tinyurl.com/9raoa5x
On January 19, 2010 Alderon completed another requirement of the Privco purchase and replaced its entire board with the Forbes and Manhattan team: Out - Jeff Durno, Robert Chisholm, Aron Buchman and Craig Goldenberger; and In were - Mark Morabito, Stan Bharti, Bruce Humphrey, Brad Boland and Patrick Gleeson. In addition, Altius as the controlling shareholder gained the right to name three members to the board, but chose to name two - John A Baker, and Brian Dalton. On February 19, 2010 Alderon listed on the American NASDAQ exchange.
On March 3, 2010 the Privco/Alderon deal was completed. Mark Morabito received 5,000,000 post consolidation shares in Alderon for acting as essentially the middleman between Alderon and Altius. Altius received 31,778,081 post consolidated shares, and a controlling interest in Alderon. Alderon also agreed to fund exploration on the Kami project of $1 million in the first year and $5 million in total in the first two years http://tinyurl.com/9kvrmhn . Altius had already completed aerial reconnaissance on the Kami project in 2006-2007, but there remained drilling, etc ahead.
On November 26, 2010 Alderon announced a private placement of 7,300,000 share units http://tinyurl.com/9sc4mrf . The price per unit was $2.20 and entitled the holder to a warrant of one common share and one half a common share exercisable at $2.80 for a period of 24 months from the closing of the offering. The original offering was valued at $16,060,000.00 with an additional over-allotment option of upto $4,015,000.00. The Alderon press release named Haywood Securities as the lead underwriter. However, Delano Capital Corp, owned by Stan Bharti's son, claims to have conducted the transaction: 9,125,000 units at $2.20 per unit for $20,075,000.00. The press release states there is a 6% commission, so one could assume the return for Delano Capital Corp would have to be around $1,204,500.00. The purchaser of these share units remains confidential.
In Part 3 of this series the Americans and the Chinese arrive at Alderon; Alderon gets political; and Muskrat Falls gains a new champion in Alderon.
Saturday, September 29, 2012
Expose Alderon Iron Ore Corp - Part 1
Alderon Iron Ore Corp came to everyones attention in the province when former premier Danny Williams was named Special Advisor to the Chairman in 2012. A little known company that was suddenly the next Thompson Consolidated mine. It has been in the press advocating its need for Muskrat Falls power yet we know nothing about it. This series will attempt to answer some of those questions.
It all began with the incorporation of the name Comanche Resources Inc, under the Company Act (British Columbia), March 21, 1978. A little less than a year later, February 28,1979, its name was changed once more to Shawnee Oil Corporation. While it was difficult getting any information on these two names, both reappeared in the United States in later years - now defunct and registered as inactive foreign for - profit corporations. On June 11, 1981 the company changed its name yet again - this time to Enfield Resources Inc. Again, not much information was available, and again the same name reappeared in the United States. Enfield Resources Inc was formed in Delaware, May 20, 1986 and appeared in US bankruptcy court on March 10, 1989. Whether or not there is a reason behind this U.S link or it is simple coincidence is anyone's guess.
The story really starts to take life on June 30, 1989 when the company name is changed one more time - Pacific Summa Capital Corp. The records show one Dennis Kozak President and Director, with an office at Suite 411-850 Hastings Street, Vancouver, BC. It appears for the first time as a publicly traded company on the Vancouver Stock Exchange under the symbol PSU.
The Vancouver Stock Exchange (VSE) was essentially the wild, wild west of stock trading in North America. Wikipedia describes it well during the period:
" In 1991, it listed some 2300 stocks. Some local figures stated that the majority of these stocks were either total failures or frauds. A 1994 report by James Matkin (Vancouver Stock Exchange and Securities Regulation Commission) made reference to 'shams, swindles, and market manipulations' within the VSE. Regardless of the low opinion several held in it, it had roughly four billion dollars in annual trading in 1991."
To be clear, this in no way suggests the companies mentioned in this article were involved in such activities, but it gives you a sense of the backdrop to this story.
On June 28, 1991 Pacific Summa Capital Corp changed its name to Pacific Summa Environmental Corp, and issued a share swap of one old for one new share. It signalled a change in the company's focus as it tried to market two products which it had US patents for: Enviro Hazmate (fire extinguisher); and Zeomix (material for toxic clean up). The company entered into an exclusive distribution deal for Zeomix which was subsequently cancelled. On June 16, 1997 the BC Securities Commission filed a Cease Trade Order against the company due to outstanding annual fees. On September 16, 1997, the Securities Commission banned Kovack from trading in the companies stock, because he failed to file insider's disclosure documents. Other members of the board at that time included Gerald Jardine, John Toljanich, and David Van Dyke. On March 10, 1998, Kovak resigned as President of the company. The company itself was suspended from the VSE on July 16, 1998. The Cease Trade Order was revoked on July, 27, 1998. Gerald Jardine took over as President and the company delisted from the VSE on November 26, 1999. Significantly, Mark Brown took over as CEO. On November 27, 1999 the company joined the TSX venture exchange. Its high value was on the VSE at $3.35 a share, and its low value was $.01 a share on the TSX when it delisted on August 8, 2000.
The next day, Pacific Summa Evironmental Corp was renamed as Traux Ventures Corp. The company by this time was carrying a deficit of $10 million dollars from its previous years, had failed to launch any successful projects, and left many disappointed investors in its wake. To launch Traux the Board of Directors initiated a 30 to 1 reverse share split. That freed them to launch yet another share offering to recapitalize the company. On April 30, 2001 Reza Mohammed took over from Mark Brown.
Reza Mohammed ran a large number of exploration companies from his tiny office in Vancouver. The companies all had the same fax and phone number, and board members - particularily one Anita Algie. Mohammed was a realtor in the Vancouver area, and earned a degree in the mid eighties. Some of the companies he ran included: Tellford Management; Cuda Capital Corp; Titus Capital Corp; Gold Key Capital Corp; etc. The one director that stands out on most of his companies was Peter Born. Born not only sat on Mohammed's boards, but he also sits on the Advisory Board of Forbes and Manhattan - a relationship that will become crucial to Alderon. Mohammed also sat on the Board of Directors of Castillian Resources Corp. Castillian was, and remains, a Forbes and Manhattan interest. It's at this stage of the company's life that Forbes and Manhattan becomes an influentual factor in the company.
Also joining Traux at this time was Senator Edward Lawson. A veteran of the Teamsters Union, Lawson was appointed as an indepedendant Senator by Pierre Trudeau and became a Liberal Senator when Paul Martin won the Liberal leadership. Senator Lawson was very involved in mineral exploration companies. Lawson's lawsuit against Sun media over a story outlining his relationships with stock fraudsters David Ward and Ed Carter created national headlines. Interestingly, the US department of Justice filed suit against the Teamsters executive (Lawson included) alledging the executive, and 26 mobsters, had conspired to hijack the union from its members. The issue was settled when the executive agreed in writing to reform the Teamsters. Lawson took over the role of Chairman of Traux.
Traux followed the path of its earlier incarnations. It achieved little. It traded alot of stock. Its overall deficit remained about $10.5 million. Its highest stock value was $.58 per share on November 17, 2003, and its lowest was $.115 on June 3, 2004. It delisted from the TSX on August 31, 2004.
On September 1, 2004, the company's name changed again - this time to Aries Resource Corp. As had become the norm the Board authorized a reverse share split of 4 old for 1 new share. Members of the Board at this time included Reza Mohammed, Senator Lawson, John Kowalchuck, Anita Algie, and John Harper. Notably, all the original Pacific Summa directors were gone at this point. A significant entry into the company was a 2 million share purchase by Doctor's Investment Group, a Bahamian registered company, owned by Michael W Taylor. Aires made an application at this time to transition into the Business Corporations Act (BC), and on the same day shareholders passed a special resolution to change its authorized capital to an unlimited number of common shares without par value. The next four years proved to be generally fruitless for the company. Its accumlated deficit increased to over $11 million. Thomas Tough, a director of Desert Sun Mining Corp, a Forbes and Manhattan interest, joined the Board. At the annual general and special meeting of September 4, 2008, shareholders passed a motion for a 10 to 1 share reverse and a name change to Alderon Resources Corp.Nineteen days later the stock completely collapsed. Reza Mohammed resigned as president on August 12, 2008. The saviours of the company were to be Emprise Capital Corp who invested in the company, appointed its Jeff Durno as president, and Robert Chisholm as director. In the words of Emprise: " Complete restructure and reorganization (of Alderon)".
The first few decades of the company's life saw it swing from one interest to another. It sold large amounts of shares, did numerous reverse share splits that crucified investors who were unlucky enough to invest, and fed numerous officers with handsome management fees. It went from oil exploration, to mining exploration,to capital fundraising, to environmental promoters, and back to mineral exploration. One thing it did not do was achieve any purposeful, positive return to its shareholders. It ended this era with a sorry $.01 per share worth. In the wild, wild west days of the VSE it behaved as most did. In its transformation to the TSX it did no better. By 2001 it was becoming infiltrated with people closely aligned to Forbes and Manhattan. The stage is now set for the Forbes and Manhattan remake - that is Part II.
It all began with the incorporation of the name Comanche Resources Inc, under the Company Act (British Columbia), March 21, 1978. A little less than a year later, February 28,1979, its name was changed once more to Shawnee Oil Corporation. While it was difficult getting any information on these two names, both reappeared in the United States in later years - now defunct and registered as inactive foreign for - profit corporations. On June 11, 1981 the company changed its name yet again - this time to Enfield Resources Inc. Again, not much information was available, and again the same name reappeared in the United States. Enfield Resources Inc was formed in Delaware, May 20, 1986 and appeared in US bankruptcy court on March 10, 1989. Whether or not there is a reason behind this U.S link or it is simple coincidence is anyone's guess.
The story really starts to take life on June 30, 1989 when the company name is changed one more time - Pacific Summa Capital Corp. The records show one Dennis Kozak President and Director, with an office at Suite 411-850 Hastings Street, Vancouver, BC. It appears for the first time as a publicly traded company on the Vancouver Stock Exchange under the symbol PSU.
The Vancouver Stock Exchange (VSE) was essentially the wild, wild west of stock trading in North America. Wikipedia describes it well during the period:
" In 1991, it listed some 2300 stocks. Some local figures stated that the majority of these stocks were either total failures or frauds. A 1994 report by James Matkin (Vancouver Stock Exchange and Securities Regulation Commission) made reference to 'shams, swindles, and market manipulations' within the VSE. Regardless of the low opinion several held in it, it had roughly four billion dollars in annual trading in 1991."
To be clear, this in no way suggests the companies mentioned in this article were involved in such activities, but it gives you a sense of the backdrop to this story.
On June 28, 1991 Pacific Summa Capital Corp changed its name to Pacific Summa Environmental Corp, and issued a share swap of one old for one new share. It signalled a change in the company's focus as it tried to market two products which it had US patents for: Enviro Hazmate (fire extinguisher); and Zeomix (material for toxic clean up). The company entered into an exclusive distribution deal for Zeomix which was subsequently cancelled. On June 16, 1997 the BC Securities Commission filed a Cease Trade Order against the company due to outstanding annual fees. On September 16, 1997, the Securities Commission banned Kovack from trading in the companies stock, because he failed to file insider's disclosure documents. Other members of the board at that time included Gerald Jardine, John Toljanich, and David Van Dyke. On March 10, 1998, Kovak resigned as President of the company. The company itself was suspended from the VSE on July 16, 1998. The Cease Trade Order was revoked on July, 27, 1998. Gerald Jardine took over as President and the company delisted from the VSE on November 26, 1999. Significantly, Mark Brown took over as CEO. On November 27, 1999 the company joined the TSX venture exchange. Its high value was on the VSE at $3.35 a share, and its low value was $.01 a share on the TSX when it delisted on August 8, 2000.
The next day, Pacific Summa Evironmental Corp was renamed as Traux Ventures Corp. The company by this time was carrying a deficit of $10 million dollars from its previous years, had failed to launch any successful projects, and left many disappointed investors in its wake. To launch Traux the Board of Directors initiated a 30 to 1 reverse share split. That freed them to launch yet another share offering to recapitalize the company. On April 30, 2001 Reza Mohammed took over from Mark Brown.
Reza Mohammed ran a large number of exploration companies from his tiny office in Vancouver. The companies all had the same fax and phone number, and board members - particularily one Anita Algie. Mohammed was a realtor in the Vancouver area, and earned a degree in the mid eighties. Some of the companies he ran included: Tellford Management; Cuda Capital Corp; Titus Capital Corp; Gold Key Capital Corp; etc. The one director that stands out on most of his companies was Peter Born. Born not only sat on Mohammed's boards, but he also sits on the Advisory Board of Forbes and Manhattan - a relationship that will become crucial to Alderon. Mohammed also sat on the Board of Directors of Castillian Resources Corp. Castillian was, and remains, a Forbes and Manhattan interest. It's at this stage of the company's life that Forbes and Manhattan becomes an influentual factor in the company.
Also joining Traux at this time was Senator Edward Lawson. A veteran of the Teamsters Union, Lawson was appointed as an indepedendant Senator by Pierre Trudeau and became a Liberal Senator when Paul Martin won the Liberal leadership. Senator Lawson was very involved in mineral exploration companies. Lawson's lawsuit against Sun media over a story outlining his relationships with stock fraudsters David Ward and Ed Carter created national headlines. Interestingly, the US department of Justice filed suit against the Teamsters executive (Lawson included) alledging the executive, and 26 mobsters, had conspired to hijack the union from its members. The issue was settled when the executive agreed in writing to reform the Teamsters. Lawson took over the role of Chairman of Traux.
Traux followed the path of its earlier incarnations. It achieved little. It traded alot of stock. Its overall deficit remained about $10.5 million. Its highest stock value was $.58 per share on November 17, 2003, and its lowest was $.115 on June 3, 2004. It delisted from the TSX on August 31, 2004.
On September 1, 2004, the company's name changed again - this time to Aries Resource Corp. As had become the norm the Board authorized a reverse share split of 4 old for 1 new share. Members of the Board at this time included Reza Mohammed, Senator Lawson, John Kowalchuck, Anita Algie, and John Harper. Notably, all the original Pacific Summa directors were gone at this point. A significant entry into the company was a 2 million share purchase by Doctor's Investment Group, a Bahamian registered company, owned by Michael W Taylor. Aires made an application at this time to transition into the Business Corporations Act (BC), and on the same day shareholders passed a special resolution to change its authorized capital to an unlimited number of common shares without par value. The next four years proved to be generally fruitless for the company. Its accumlated deficit increased to over $11 million. Thomas Tough, a director of Desert Sun Mining Corp, a Forbes and Manhattan interest, joined the Board. At the annual general and special meeting of September 4, 2008, shareholders passed a motion for a 10 to 1 share reverse and a name change to Alderon Resources Corp.Nineteen days later the stock completely collapsed. Reza Mohammed resigned as president on August 12, 2008. The saviours of the company were to be Emprise Capital Corp who invested in the company, appointed its Jeff Durno as president, and Robert Chisholm as director. In the words of Emprise: " Complete restructure and reorganization (of Alderon)".
The first few decades of the company's life saw it swing from one interest to another. It sold large amounts of shares, did numerous reverse share splits that crucified investors who were unlucky enough to invest, and fed numerous officers with handsome management fees. It went from oil exploration, to mining exploration,to capital fundraising, to environmental promoters, and back to mineral exploration. One thing it did not do was achieve any purposeful, positive return to its shareholders. It ended this era with a sorry $.01 per share worth. In the wild, wild west days of the VSE it behaved as most did. In its transformation to the TSX it did no better. By 2001 it was becoming infiltrated with people closely aligned to Forbes and Manhattan. The stage is now set for the Forbes and Manhattan remake - that is Part II.
Saturday, February 4, 2012
The Real Muskrat Falls - Conclusion
"All that is necessary for the triumph of evil is that good men do nothing." Edmund Burke
The real truth about hydro power in Newfoundland and Labrador is it's not where it's needed. According to the Manitoba Hydro Report, just released, on the Muskrat Falls project fifty percent of the power consumed in Newfoundland and Labrador is residential in nature http://tinyurl.com/6q7hyns It is insightful, therefore, to know that this province is undergoing an aging tsunami like no other place in the western world has seen yet - but will.
During the period between 1985 to 1995 well over 150,000 Newfoundlanders under the age of 23 left the province. It created a massive hole in the demographics of the province, and it was inevitable that such a loss would reverberate in the future. The future is now. Using normal/average population loss/gain trends and a very optimistic birthrate of 1.3 Newfoundland and Labrador's population will decline to approximately 430,000 people within the next 19 years. If birthrates continue to decline, which is almost a certainty, the population could easily drop to 400,000 in the same period. Unfortunately, Nalcor has used population projections provided by the Newfoundland government that are nowhere near correct, and in fact show an ever growing population into the future.
Given the reality that the population will decline, as it must with such an exodus in the 1980's and 1990's, it is prudent to assume that residential power consumption will also decline - drastically. Also, given the fact that over 90% of the population lives on the island of Newfoundland, and not in mainland Labrador, that power consumption decline will be most radical in Newfoundland itself.
The strategic problem for Nalcor, and the provincial government, is that the island has a surplus of power generation capacity and declining consumption, while Labrador has a minor surplus but potentially exploding demand. In 2010 Nalcor negotiated an agreement with Hydro Quebec to "wheel" its recall power from the Upper Churchill to the US market place for five years, rather than use that power in Labrador where there is currently no overriding demand. In a possible rehearsal of the Muskrat Falls deal, Emera is receiving that power and selling it into the marketplace. The first quarter's results of this practice were large financial losses and Nalcor has not released any further numbers since.
The problem for the Newfoundland and Labrador government, like that of the Quebec government (ironically), is how to open up the northern areas of the province for key mining developments. Newfoundland has its Upper Churchill dam "captured" by Hydro Quebec until at least 2041, and will not negotiate with Hydro Quebec despite the fact Hydro Quebec had a surplus capacity of 5000MW of power in 2010. An obvious strategic alternative for the government of Newfoundland and Labrador would be to enter into a long term agreement, say to 2041, with Hydro Quebec to supply roughly 700-800 MW of power to future mining operations in Labrador. That would eliminate the need for the province to go into any further debt over hydro, and would establish the infrastructure for mining operations going into 2041 and the repatriation of the Upper Churchill to the province. Is it a case of cutting your nose off to spite your face?
Or is it a case of vested interest close to the government not making enough money personally off that kind of arrangement. As detailed, in previous parts to this series, political and business families interests have been interlinked between the development of Nalcor as a crown corporation, the development of the Lower Churchill, and development of the Labrador mining industry. In each and every case these individuals, regardless of political stripe (yet they are all very political), have become wealthy on this process. Whether it be through stock options, appointments to chairs of boards, or often secretive, but real non-competitive government contracts, these circles have managed to grossly enrich themselves. The kicker is it often, if not always, comes at the expense of the people of Newfoundland and Labrador.
The financing of the Muskrat Falls project will be no different. To be clear, I have requested Nalcor supply me with the proposed financing strategy for the project. They have refused. I requested the same information from Minister of Natural Resources Jerome Kennedy, and have been refused. So what I'm about to put together here is from the information known, the business practices of those involved, and the project itself.
In 2005, at the request of then Premier Danny Williams, and announced by his chosen Chair of Nalcor Dean MacDonald, the province requested Expressions of Interest (EOI) for development of the Lower Churchill. It accepted separate proposals for actual construction and financing of the project. Three proposals for financing were accepted for further scrutiny. Two were foreign based and one was Newfoundland based. That was the last we heard of it. There has been no further public release of information, despite the earlier releases. The internal Nalcor process for project decision making has past "Gateway 2", by which time a decision narrowing the project financing options was to have occurred - yet no public release of information.
Then in 2011/2012 we saw key players of Danny Williams, himself included, leave the government and Nalcor to become directly involved in Alderon's mining prospect Kami. The same Alderon that is 40% owned by Altius. The same Altius that had the one known funding proposal for the Lower Churchill that was based in Newfoundland. The same Alderon and Altius that accompanied Premier Dunderdale to China on a recent trade mission. The same Altius that required a bailout for its failed Newfoundland and Labrador Refining Corporation and then Premier Williams, and Natural Resources Minister Kathy Dunderdale, tried to get investors for in the Middle East - in person no less. You see the trend?
Some further political context can illustrate the self-interest, or perceived self-interest, that is rampant amongst Newfoundland's "ruling class". There is the case of Danny Williams' old law firm, which he was a founder and was, according to the Business Post, still listed as a creditor to, and at which he still has an office, being awarded an untendered contract to be a US law firm's Newfoundland representative in a multi-billion dollar lawsuit against tobacco corporations - potentially the largest by far legal action in Newfoundland's history. Then there was the case of Williams appointing John Ottenheimer as Nalcor's Chair despite the fact that Ottenheimer was related to the co-founder of the Ottenheimer and Baker law group - the same law group that is listed as having the Department of Natural Resources as a major client, and whose other co-founder is a principle of Altius. Yes, the same Altius that had a proposal to fund Muskrat Falls being scrutinized by Nalcor. Williams government also gave Dean MacDonald's company, Persona Communications, an untendered contract worth $15 million just prior to its sale. http://tinyurl.com/85j7x5w Yes, that's the same Dean MacDonald that Williams appointed to Nalcor, and the same one that left the job when former Premier Grimes tried to get an agreement with Hydro Quebec on the Lower Churchill. Now you can really start seeing the trend.
Williams and company are now officially a part of the team that likes to take its cut for expediting projects. Altius, The Exploration Group, Forbes and Manhattan all have a singular business practice in common: find the opportunity; provide initial seed capital; take it public; manage it to takeover; establish a percentage ongoing royalty; and leave. This is how I see the financing of Muskrat Falls happening.
Despite the fact that Altius, and the government of Newfoundland and Labrador, have kept the details of this financing proposal mostly secret, some particulars have been stated. Interestingly, in the official government press release and Nalcor's, no mention was made of the other two corporation's financing strategies http://tinyurl.com/7gm4wgb . Altius proposed, in their words, to create a Royalty Trust which would be non-competetive with those seeking to physically construct the project, and would guarantee them a 3% royalty on gross hydro sales of the Muskrat Falls project. One is left assuming, in the absence of disclosure by either Nalcor or the provincial government, that Altius' proposal is still on the table - the Royalty Trust.
A royalty trust is a type of corporation, mostly in the United States or Canada, usually involved in oil and gas production or mining. However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage (e.g. 90%) of profits are distributed to shareholders as dividends. The dividends are then taxed as personal income. This system, similar to real estate investment trusts, effectively avoids the double taxation of corporate income. http://en.wikipedia.org/wiki/Royalty_trust .
Judging from the high degree of self interest involved in this project, it is likely that a Royalty Trust would be established along the lines of the Pengrowth Energy Trust. Pengrowth had an unlimited number of trust units, essentially shares, that were divided into class A and B units. The difference between A and B shares was place of residency. While class A shares could be held by anyone residing in any part of the world, class B shares could only be owned by residents. There was a further stipulation that class A shares could never outnumber class B shares so that out of country interests could never control the trust fund. Another potential twist is the value of a trust solely based on revenue from Muskrat Falls. Given the amount of financing required to build Muskrat Falls it seems unlikely a trust formed for that purpose could raise the necessary cash. It would therefore not be surprising to see other assets added to the mix to boost such a trusts returns. Some definate candidates could be the equity positions the government of Newfoundland and Labrador has secured in the off shore.
This type of arrangement makes sense given the business practices of those pushing the project ahead. In each case that I have studied Altius, The Exploration Group, and Forbes and Manhattan's principles have taken a large share position personally, and in the interim corporately as well. Given that there is limited wealth in Newfoundland and Labrador amongst the general population, and a very small percentage of people that are informed on market economics, such an instrument is open for exploitation primarily by the few. As Danny Williams has said many times, with a grin: "It's such a good deal I would put my own money in if I could."
The real money to be made on a Royalty Trust though would be the 3% royalty on gross hydro sales. As an example, if the Muskrat Falls project were to produce, on average, $300 million per year over its 100 year lifetime the payout would be a staggering $900 million. That's $9 million per year of guaranteed revenue for a corporation like Altius to use elsewhere in leveraging further assets. That is more than they make on Voise's Bay - which will not last 50 years.
The bottom line is some people in Newfoundland stand to make a lot of money, and continue to effect the governance of the province. Those that will be paying the bill on the island of Newfoundland won't be so lucky. The real kicker is power prices in Labrador are a third of the prices in Newfoundland. That means that Muskrat Falls power will be subsidized heavily by people who will see no ongoing benefit from it - like the Upper Churchill. Quebec's Plan Nord appears to be shaping up in similar terms. The real tragedy of the real Muskrat Falls story isn't the insiders who are aiming to win, or even the massive debt that will be incurred for the project and the mines. No the tragedy of the real Muskrat Falls is that the people of Newfoundland and Labrador are being sold a bill of goods by insiders who could care less about their own, and being led down the garden path by the pied pipers of Newfoundland and Labrador. That is the real tragedy.
The real truth about hydro power in Newfoundland and Labrador is it's not where it's needed. According to the Manitoba Hydro Report, just released, on the Muskrat Falls project fifty percent of the power consumed in Newfoundland and Labrador is residential in nature http://tinyurl.com/6q7hyns It is insightful, therefore, to know that this province is undergoing an aging tsunami like no other place in the western world has seen yet - but will.
During the period between 1985 to 1995 well over 150,000 Newfoundlanders under the age of 23 left the province. It created a massive hole in the demographics of the province, and it was inevitable that such a loss would reverberate in the future. The future is now. Using normal/average population loss/gain trends and a very optimistic birthrate of 1.3 Newfoundland and Labrador's population will decline to approximately 430,000 people within the next 19 years. If birthrates continue to decline, which is almost a certainty, the population could easily drop to 400,000 in the same period. Unfortunately, Nalcor has used population projections provided by the Newfoundland government that are nowhere near correct, and in fact show an ever growing population into the future.
Given the reality that the population will decline, as it must with such an exodus in the 1980's and 1990's, it is prudent to assume that residential power consumption will also decline - drastically. Also, given the fact that over 90% of the population lives on the island of Newfoundland, and not in mainland Labrador, that power consumption decline will be most radical in Newfoundland itself.
The strategic problem for Nalcor, and the provincial government, is that the island has a surplus of power generation capacity and declining consumption, while Labrador has a minor surplus but potentially exploding demand. In 2010 Nalcor negotiated an agreement with Hydro Quebec to "wheel" its recall power from the Upper Churchill to the US market place for five years, rather than use that power in Labrador where there is currently no overriding demand. In a possible rehearsal of the Muskrat Falls deal, Emera is receiving that power and selling it into the marketplace. The first quarter's results of this practice were large financial losses and Nalcor has not released any further numbers since.
The problem for the Newfoundland and Labrador government, like that of the Quebec government (ironically), is how to open up the northern areas of the province for key mining developments. Newfoundland has its Upper Churchill dam "captured" by Hydro Quebec until at least 2041, and will not negotiate with Hydro Quebec despite the fact Hydro Quebec had a surplus capacity of 5000MW of power in 2010. An obvious strategic alternative for the government of Newfoundland and Labrador would be to enter into a long term agreement, say to 2041, with Hydro Quebec to supply roughly 700-800 MW of power to future mining operations in Labrador. That would eliminate the need for the province to go into any further debt over hydro, and would establish the infrastructure for mining operations going into 2041 and the repatriation of the Upper Churchill to the province. Is it a case of cutting your nose off to spite your face?
Or is it a case of vested interest close to the government not making enough money personally off that kind of arrangement. As detailed, in previous parts to this series, political and business families interests have been interlinked between the development of Nalcor as a crown corporation, the development of the Lower Churchill, and development of the Labrador mining industry. In each and every case these individuals, regardless of political stripe (yet they are all very political), have become wealthy on this process. Whether it be through stock options, appointments to chairs of boards, or often secretive, but real non-competitive government contracts, these circles have managed to grossly enrich themselves. The kicker is it often, if not always, comes at the expense of the people of Newfoundland and Labrador.
The financing of the Muskrat Falls project will be no different. To be clear, I have requested Nalcor supply me with the proposed financing strategy for the project. They have refused. I requested the same information from Minister of Natural Resources Jerome Kennedy, and have been refused. So what I'm about to put together here is from the information known, the business practices of those involved, and the project itself.
In 2005, at the request of then Premier Danny Williams, and announced by his chosen Chair of Nalcor Dean MacDonald, the province requested Expressions of Interest (EOI) for development of the Lower Churchill. It accepted separate proposals for actual construction and financing of the project. Three proposals for financing were accepted for further scrutiny. Two were foreign based and one was Newfoundland based. That was the last we heard of it. There has been no further public release of information, despite the earlier releases. The internal Nalcor process for project decision making has past "Gateway 2", by which time a decision narrowing the project financing options was to have occurred - yet no public release of information.
Then in 2011/2012 we saw key players of Danny Williams, himself included, leave the government and Nalcor to become directly involved in Alderon's mining prospect Kami. The same Alderon that is 40% owned by Altius. The same Altius that had the one known funding proposal for the Lower Churchill that was based in Newfoundland. The same Alderon and Altius that accompanied Premier Dunderdale to China on a recent trade mission. The same Altius that required a bailout for its failed Newfoundland and Labrador Refining Corporation and then Premier Williams, and Natural Resources Minister Kathy Dunderdale, tried to get investors for in the Middle East - in person no less. You see the trend?
Some further political context can illustrate the self-interest, or perceived self-interest, that is rampant amongst Newfoundland's "ruling class". There is the case of Danny Williams' old law firm, which he was a founder and was, according to the Business Post, still listed as a creditor to, and at which he still has an office, being awarded an untendered contract to be a US law firm's Newfoundland representative in a multi-billion dollar lawsuit against tobacco corporations - potentially the largest by far legal action in Newfoundland's history. Then there was the case of Williams appointing John Ottenheimer as Nalcor's Chair despite the fact that Ottenheimer was related to the co-founder of the Ottenheimer and Baker law group - the same law group that is listed as having the Department of Natural Resources as a major client, and whose other co-founder is a principle of Altius. Yes, the same Altius that had a proposal to fund Muskrat Falls being scrutinized by Nalcor. Williams government also gave Dean MacDonald's company, Persona Communications, an untendered contract worth $15 million just prior to its sale. http://tinyurl.com/85j7x5w Yes, that's the same Dean MacDonald that Williams appointed to Nalcor, and the same one that left the job when former Premier Grimes tried to get an agreement with Hydro Quebec on the Lower Churchill. Now you can really start seeing the trend.
Williams and company are now officially a part of the team that likes to take its cut for expediting projects. Altius, The Exploration Group, Forbes and Manhattan all have a singular business practice in common: find the opportunity; provide initial seed capital; take it public; manage it to takeover; establish a percentage ongoing royalty; and leave. This is how I see the financing of Muskrat Falls happening.
Despite the fact that Altius, and the government of Newfoundland and Labrador, have kept the details of this financing proposal mostly secret, some particulars have been stated. Interestingly, in the official government press release and Nalcor's, no mention was made of the other two corporation's financing strategies http://tinyurl.com/7gm4wgb . Altius proposed, in their words, to create a Royalty Trust which would be non-competetive with those seeking to physically construct the project, and would guarantee them a 3% royalty on gross hydro sales of the Muskrat Falls project. One is left assuming, in the absence of disclosure by either Nalcor or the provincial government, that Altius' proposal is still on the table - the Royalty Trust.
A royalty trust is a type of corporation, mostly in the United States or Canada, usually involved in oil and gas production or mining. However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage (e.g. 90%) of profits are distributed to shareholders as dividends. The dividends are then taxed as personal income. This system, similar to real estate investment trusts, effectively avoids the double taxation of corporate income. http://en.wikipedia.org/wiki/Royalty_trust .
Judging from the high degree of self interest involved in this project, it is likely that a Royalty Trust would be established along the lines of the Pengrowth Energy Trust. Pengrowth had an unlimited number of trust units, essentially shares, that were divided into class A and B units. The difference between A and B shares was place of residency. While class A shares could be held by anyone residing in any part of the world, class B shares could only be owned by residents. There was a further stipulation that class A shares could never outnumber class B shares so that out of country interests could never control the trust fund. Another potential twist is the value of a trust solely based on revenue from Muskrat Falls. Given the amount of financing required to build Muskrat Falls it seems unlikely a trust formed for that purpose could raise the necessary cash. It would therefore not be surprising to see other assets added to the mix to boost such a trusts returns. Some definate candidates could be the equity positions the government of Newfoundland and Labrador has secured in the off shore.
This type of arrangement makes sense given the business practices of those pushing the project ahead. In each case that I have studied Altius, The Exploration Group, and Forbes and Manhattan's principles have taken a large share position personally, and in the interim corporately as well. Given that there is limited wealth in Newfoundland and Labrador amongst the general population, and a very small percentage of people that are informed on market economics, such an instrument is open for exploitation primarily by the few. As Danny Williams has said many times, with a grin: "It's such a good deal I would put my own money in if I could."
The real money to be made on a Royalty Trust though would be the 3% royalty on gross hydro sales. As an example, if the Muskrat Falls project were to produce, on average, $300 million per year over its 100 year lifetime the payout would be a staggering $900 million. That's $9 million per year of guaranteed revenue for a corporation like Altius to use elsewhere in leveraging further assets. That is more than they make on Voise's Bay - which will not last 50 years.
The bottom line is some people in Newfoundland stand to make a lot of money, and continue to effect the governance of the province. Those that will be paying the bill on the island of Newfoundland won't be so lucky. The real kicker is power prices in Labrador are a third of the prices in Newfoundland. That means that Muskrat Falls power will be subsidized heavily by people who will see no ongoing benefit from it - like the Upper Churchill. Quebec's Plan Nord appears to be shaping up in similar terms. The real tragedy of the real Muskrat Falls story isn't the insiders who are aiming to win, or even the massive debt that will be incurred for the project and the mines. No the tragedy of the real Muskrat Falls is that the people of Newfoundland and Labrador are being sold a bill of goods by insiders who could care less about their own, and being led down the garden path by the pied pipers of Newfoundland and Labrador. That is the real tragedy.
Friday, January 27, 2012
The Real Muskrat Falls - Part 3
One phrase: Mines for a Dam. Two words: Twin Falls. Twin Falls are waterfalls located on the Unknown River, Labrador. During the 1950's British Newfoundland Development Corporation (Brinco) had the power development rights on the river. In partnership with Wabush Mines Limited and the Iron Ore Company of Canada, the two mining corporations operating in Western Labrador, Brinco created the Twin Falls Power Corporation to deliver power 115 miles (185 km) west to the two mining operations being developed near the Labrador-Quebec border.
When the dam was finished in 1963, the station had a total capacity of 225 MW with two 115-mile (185 km) long transmission lines at 230,000 volts (or 230 kV), with remote switching at the far end from the station. Twin Falls power was essential to the later power development at Churchill Falls. It helped open up the area and supplied the power required during the construction phase of the project. So a 225 MW dam was built to essentially run two iron ore mines, and infrastructure. Curiously, Brinco was also the corporation that signed the much lamented 1969 Power Contract with Hydro Quebec for the Upper Churchill.
Fast forward almost 50 years, and here we are again - building a dam for mining. Today there are 17 some mines being developed in the Labrador Trough. A few American. A few European. One Brazilian. Two Indian. The remaining six or so Chinese. Its a virtual microcosm of the developing world's strangle hold on the New World financial order of things. The problem for the developers, read juniors and their merchant backers, is the lack of necessary infrastructure to convert promising mining deposits to full scale operations in their own right.
Traditionally, in Newfoundland and Labrador, private businesses have to arrange their own power for such activities as mining. The Twin Falls dam is one example, but there are many others. The problem with that approach for the developers is it adds a massive cost onto the bottom line of each tonne of ore mined, and makes the mining of these deposits unprofitable. That was Credit Suisse's analysis as well when they did a direct comparison to Consolidated Thompson's mine and the developing Kami project which is owned by Alderon http://tinyurl.com/79ey28b . Yes, the same Alderon that has Danny Williams as its "special advisor" to the Chairman of the Board. Credit Suisse essentially says that Alderon- and you could put all the mines developing in Labrador on the same page- is an attractive deposit but lacks the necessary infrastructure to make it profitable. Therefore, they rate it as "speculative".
Alderon is a good example of what is happening with the mines in Labrador, and their connection to the Muskrat Falls development. For starters, here is a look at the insiders who have an ownership interest in Alderon Iron Corp from SEDI, System for Electronic Disclosure by Insiders, Listed Below. Now have a look at the insider report on ownership for Altius, which sold its rights to the Kami project to Alderon for a roughly 40% stake in Alderon Iron Corp, Listed below .
The first thing you are likely to notice is that Altius' directors have their own interest in Alderon - apart from Altius' corporate share of Alderon's ownership. You will also recognize names there from both the Progressive Conservative Party and Liberal Party of Newfoundland. You will notice the recent purchase by Liberty of Alderon shares for $40 million, which will allow the Kami project to be further developed. You will notice the shares held by Mark Morabito - a large number of shares. Mr Morabito is the Chairman and Chief Executive Officer of The Exploration Group, a privately held company headquartered in Vancouver. If you check the Exploration Group's web site you will notice it lists Alderon as one of its companies. Mr. Morabito also sits on the Board of Alderon as its Executive Chairman.
You will also find a gentleman by the name of Stan Bharti as Vice Chairman of Alderon. In reality, Stan Bharti runs the privately owned Forbes and Manhattan Group. A Toronto-based merchant bank specializing in identifying resource projects around the world, providing them with seed capital, taking them public, often arranging foreign capital acquisition of them, and then getting out. Mr. Bharti is a world class player, and his Advisory Board backs that up : General John Abizaid (ret) US Army; General Jay Garner (ret) US Army; General Ron Hite (ret) US Army; General Lewis MacKenzie (ret) Canadian Army; General Sir Michael Rose (ret) British Army (SAS); Larry King (ret) US entertainment legend; Hon Pierre Pettigrew (ret) Canadian Federal Liberal politician; Bernard Wilson; and Peter Boot.
In reality, Forbes and Manhattan appear to run The Exploration Group, which in turn runs Alderon. As an example, the press release announcing Danny Williams appointment to Alderon's Board listed a Toronto office that in reality is the office of Black Iron Inc, a subsidiary of Forbes and Manhattan. Its Vancouver office is in fact the corporate office of The Exploration Group. You get the idea. These companies are one and the same. The bottom line to these gents is "increasing shareholder value". In this case, as there are no shareholders in The Exploration Group and Forbes and Manhattan, they mean "increase the share value so we can make an astronomical return when it gets off the ground." Fair enough. That is what business is about, and the gents at Forbes and Manhattan are doing it all over the world.
What is interesting on the Newfoundland and Labrador level is the politicization of Alderon's management team. I was present at the October PC convention when Danny Williams took the stage to give an emotional presentation on the service of one Garry Norris. He let it be known that Norris was the go to guy for any research or any problem, and that he had served the Party well over the years. Williams let it be known then that Norris was leaving public service and gave him a present from the Party for his service. Norris' retirement was officially announced on November 30, 2010 and took effect on December 3, 2010 - the same day as Danny Williams last day in office. Norris was Deputy Clerk of Executive Council under Brian Tobin and Clerk under Beaton Tulk. Roger Grimes removed him from that position when he became Premier. Norris took on the position of Executive VP of Government and Community Affairs at Alderon effective July 4, 2011 - barely 6 months after retiring from the government. Three days later he is registered as holding 250,000 options/shares in Alderon at a value today of over $800,000.00.
The same announcement from Alderon appointed Todd Burlingame as Executive VP for Environment and Aboriginal Affairs. He also received the 250,000 share handshake two days after he signed on. His duties are described in the release: "Mr. Burlingame will be responsible for all environmental permitting aspects to develop the Kamistiatusset (”Kami”) Project through to production, including acquiring all required environmental approvals. He will also have a lead role in Aboriginal Relations." Just so happens that Burlingame's previous position, that he left to take this one, was Manager of Environment and Aboriginal Affairs with Nalcor.
The Board at Alderon is really reflective of what is at work in Labrador. We've already covered the real power behind the group - Stan Bharti. We have covered his head of The Exploration Group - Mark Morabito. You have Matt Simpson who also doubles as Forbes and Manhattans man in Toronto heading Black Iron Inc, and who is working with the famous Larry King on a mine in the Ukraine (Maybe that's how Danny Williams got that spot on the Larry King show). There is Bruce Humphrey who is a Forbes/Exploration Group man and sits on several of its subsidiaries boards - including Cross Hair Exploration and Minerals which is currently developing an uranium project in Labrador (the
Nunatsiavut Assembly just lifted a ban on uranium exploration there). There is Brad Boland who was Brian Tobin's right hand man at Consolidated Thompson. Then of course there is Brian Dalton and John Baker from Altius. That is the same Dalton and Baker that headed the failed Newfoundland and Labrador Refining Corporation. The same two that were involved in Aurora Energy that is also developing a uranium property in Labrador. The same John Baker that owns Ottenheimer and Baker that has the Newfoundland and Labrador Department of Natural Resources as its key client.
That brings us to the Board's latest addition - Danny Williams. The Danny Williams that went to the Middle East with Kathy Dunderdale to try and get investors to bail out Dalton and Baker's Refining Corp. The same Williams that placed MacDonald as Chair of Nalcor. The same Williams that while in office refused to do a deal with Hydro Quebec on the Lower Churchill, but endorsed Altius' bid to fund it as one of three. The boss of Kathy Dunderdale, who as the new Premier took a trade mission to China to promote junior mining companies. Three of those should sound familiar: Alderon; Altius; and Century. Knowing the players one big question remains: Why do they need Danny Williams as a "Special Advisor" to the Chair? The Forbes and Manhattan/Exploration Group really needs special advice from Danny Williams? Is Danny part of the deal? Hard to say with a public company that sells shares to anyone on the exchange. Surely it's not a political necessity to have the former Premier on the Board. There is his connection to the Muskrat Falls deal. They do need the power. He does have business connections in St. John's, but do they really need him?
The truth is Forbes and Manhattan has done something similar to this before - except it was with former Liberal Premier Brian Tobin. In 2005 Stan Bharti and a group of investors raised a private placement of $1 million to get then Thompson Consolidated - Lundmark Gold Mines off the ground. Mr. Bharti then took over briefly as President. Despite Brian Tobin's recent comments that his old political contacts in China saved the mines bacon http://tinyurl.com/6n5h77n it was a determined effort by Bharti's Forbes and Manhattan Group that kept the struggling company alive. They outline this as one of their accomplishments:
Consolidated Thompson Iron Mines
(Created)
In 2006 Tobin was appointed as the Chair of Thompson Consolidated. He had previously served on a number of boards including Dean MacDonald's Persona Communications, and Canadian Imperial Ventures - a Danny Williams interest. Bernard Wilson was appointed to Thompson Consolidated's Board at the same time. When WISCO (China) invested over $200 million in the corporation Bharti and Bruce Humphrey stepped down from its Board and Chief Financial Officer Brad Boland resigned his position as well. If you check the team at Alderon you will see these three gentlemen now play key roles in this corporation.
The three big problems holding back mining development in Labrador have been power, rail, and ports. In 2010 the rail question was answered to some extent by the completion of the Bloom Lake Railway. A creation of Thompson Consolidated the $100 million railway was described by Tobin: "We have developed our infrastructure, in this case the railway, and we said from the get-go, 'this railway will be available to other users if and when other mining projects are brought to reality.'" Of course the railway is now owned by US based Cliff Resources, and operated by long term agreement with US based Genesee and Wyoming. There remains considerable debate regarding the ability of Quebec's ports to handle projected iron ore originating in Labrador and shipping to Asia and/or Europe.
The power part of the equation is still in question.
ALDERON INSIDERS
Insider Information by Issuer - View Results
Issuer name : alderon ( Starts with )
Date range : January 1, 1995 - January 27, 2012
2012-01-27 22:40 ET
Issuer Name: Alderon Iron Ore Corp.
Legend: Insider's Relationship to Issuer: 1 - Issuer, 2 - Subsidiary of Issuer, 3 - 10% Security Holder of Issuer, 4 - Director of Issuer, 5 - Senior Officer of Issuer, 6 - Director
or Senior Officer of 10% Security Holder, 7 - Director or Senior Officer of Insider or Subsidiary of Issuer (other than in 4,5,6), 8 - Deemed Insider - 6 Months before
becoming Insider.
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2009-12-08
Algie, Anita Young
Insider Relationship: 4 - Director of Issuer
2006-12-30 Common Shares 88,000
2006-01-25 Options (Common Shares) 50,000 50,000
Insider Name:
Ceased to be Insider: Not Applicable
Altius Minerals Corporation
Insider Relationship: 3 - 10% Security Holder of Issuer
2010-12-15 Common Shares 2260761 Ontario Inc. 584,000
2011-02-11 Common Shares Altius Resources Inc. 0
2010-12-15 Warrants (Warrants) 2260761 Ontario Inc. 150,000 150,000
Insider Name:
Ceased to be Insider: Not Applicable
Altius Resources Inc.
Insider Relationship: 3 - 10% Security Holder of Issuer
-1-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
2011-02-11 Common Shares Altius Investments
Limited
32,285,006
Insider Name:
Ceased to be Insider: Not Applicable
Amisano, Terry Michael
Insider Relationship: 3 - 10% Security Holder of Issuer
2003-11-14 Common Shares 0 0
Insider Name:
Ceased to be Insider: 2011-11-28
Atwal, Sonya
Insider Relationship: 5 - Senior Officer of Issuer
2011-09-16 Common Shares 25,000
2010-12-29 Options (Common Shares) 120,000 120,000
2011-05-24 OTC Calls (including Private
Options to Purchase) (Common
Shares)
0 0
Insider Name:
Ceased to be Insider: 2005-04-29
Bachman, Richard Lynn
Insider Relationship: 5 - Senior Officer of Issuer
2004-02-05 Common Shares 840,000
Insider Name:
Ceased to be Insider: Not Applicable
Baker, John
Insider Relationship: 4 - Director of Issuer, 6 - Director or Senior Officer of 10% Security Holder
2011-02-09 Options (Common Shares) 400,000 400,000
-2-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Bharti, Stan
Insider Relationship: 4 - Director of Issuer
2011-12-20 Common Shares FORBES &
MANHATTAN
2,100,000
2011-02-09 Options (Common Shares) 900,000 900,000
Insider Name:
Ceased to be Insider: Not Applicable
Boland, Brad James
Insider Relationship: 5 - Senior Officer of Issuer
2010-03-03 Common Shares 250,000
2011-02-09 Options (Common Shares) 300,000 300,000
Insider Name:
Ceased to be Insider: Not Applicable
Burlingame, Todd
Insider Relationship: 5 - Senior Officer of Issuer
2011-06-13 Common Shares 0
2011-06-13 Options (Common Shares) 250,000 250,000
Insider Name:
Ceased to be Insider: Not Applicable
Dalton, Brian
Insider Relationship: 4 - Director of Issuer, 6 - Director or Senior Officer of 10% Security Holder
2011-02-09 Options (Common Shares) 400,000 400,000
-3-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2009-09-22
Doctors Investment Group Ltd.
Insider Relationship: 3 - 10% Security Holder of Issuer
2009-12-04 Common Shares 0 0
Insider Name:
Ceased to be Insider: Not Applicable
Dunn, Christopher Noel
Insider Relationship: 4 - Director of Issuer
2012-01-13 Common Shares 0
2012-01-13 Options (Common Shares) 0 0
Insider Name:
Ceased to be Insider: 2010-03-03
Durno, Jeff
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2010-02-16 Subscription Rights (Common
Shares)
Natgar Capital Corp. 20,500 20,500
Insider Name:
Ceased to be Insider: Not Applicable
Eldem, Tayfun
Insider Relationship: 5 - Senior Officer of Issuer
2011-09-07 Common Shares 0
2011-09-07 Options (Common Shares) 1,000,000 1,000,000
Insider Name:
Ceased to be Insider: 2010-03-03
Emprise Capital Corporation
Insider Relationship: 3 - 10% Security Holder of Issuer
2009-11-25 Common Shares 3,500,000
-4-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2010-12-13
Gleeson, Patrick James
Insider Relationship: 5 - Senior Officer of Issuer
2010-03-03 Common Shares 250,000
2010-11-08 Options (Common Shares) 200,000 200,000
Insider Name:
Ceased to be Insider: 2004-02-09
Hanson, Kevin R.
Insider Relationship: 3 - 10% Security Holder of Issuer
2004-02-09 Common Shares 0 0
Insider Name:
Ceased to be Insider: Not Applicable
Humphrey, Raymond Bruce
Insider Relationship: 4 - Director of Issuer
2010-03-03 Common Shares 500,000
2011-02-09 Options (Common Shares) 500,000 500,000
Insider Name:
Ceased to be Insider: Not Applicable
Jardine, Gerald Levelle
Insider Relationship: 3 - 10% Security Holder of Issuer, 4 - Director of Issuer, 5 - Senior Officer of Issuer
2004-02-09 Common Shares 6,730
-5-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2008-01-01
Kowalchuk, John
Insider Relationship: 4 - Director of Issuer
2006-01-25 Options (Common Shares) 50,000 50,000
Insider Name:
Ceased to be Insider: Not Applicable
Lawson, Edward Martin
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2006-09-05 Common Shares 359,312
2006-04-28 Common Shares Minera Sucunduri 0
Insider Name:
Ceased to be Insider: Not Applicable
Lewis, Benjamin Gerard
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-02-04 Common Shares 0
Insider Name:
Ceased to be Insider: Not Applicable
Liberty Metals & Mining Holdings, LLC
Insider Relationship: 3 - 10% Security Holder of Issuer
2012-01-13 Common Shares 14,981,273
Insider Name:
Ceased to be Insider: Not Applicable
Marcotte, Simon
Insider Relationship: 5 - Senior Officer of Issuer
2010-12-13 Common Shares 101,000
2010-12-29 Options (Common Shares) 325,000 201,000
-6-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2009-12-08
Mohammed, Reza Ahmed
Insider Relationship: 5 - Senior Officer of Issuer
2008-01-10 Common Shares 610,000
2005-11-09 Common Shares Tellford Management
Ltd.
267,500
2006-01-25 Options (Common Shares) 420,000 420,000 420,000
Insider Name:
Ceased to be Insider: Not Applicable
Morabito, Mark Joseph
Insider Relationship: 4 - Director of Issuer
2012-01-26 Common Shares 3,095,000
2010-11-01 Common Shares Morabito Family Trust 0
2011-02-09 Options (Common Shares) 900,000 900,000
2012-01-26 OTC Puts (including Private
Options to Sell) Common Shares
(Common Shares)
-425,000 -425,000
Insider Name:
Ceased to be Insider: Not Applicable
Norris, Gary
Insider Relationship: 5 - Senior Officer of Issuer
2011-07-04 Common Shares 0
2011-07-04 Options (Common Shares) 250,000 250,000
-7-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Paine, Sheila Margaret
Insider Relationship: 5 - Senior Officer of Issuer
2012-01-27 Common Shares 0
2012-01-26 Options (Common Shares) 100,000 100,000
Insider Name:
Ceased to be Insider: 2011-12-01
Penney, Brian
Insider Relationship: 5 - Senior Officer of Issuer
2011-05-07 Common Shares 0
2011-10-03 Options (Common Shares) 500,000 500,000
Insider Name:
Ceased to be Insider: 2010-12-13
PONTIUS, Jeffrey A.
Insider Relationship: 4 - Director of Issuer
2010-03-03 Common Shares 200,000
2010-11-08 Options (Common Shares) 200,000 200,000
Insider Name:
Ceased to be Insider: Not Applicable
Porter, David James
Insider Relationship: 4 - Director of Issuer
2011-02-09 Options (Common Shares) 300,000 300,000
-8-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Potvin, Bernard
Insider Relationship: 5 - Senior Officer of Issuer
2011-11-14 Common Shares 0
2011-11-14 Options (Common Shares) 250,000 250,000
Insider Name:
Ceased to be Insider: Not Applicable
Santorelli, Keith
Insider Relationship: 5 - Senior Officer of Issuer
2011-11-28 Common Shares 0
2011-11-28 Options (Common Shares) 300,000 300,000
Insider Name:
Ceased to be Insider: 2005-03-04
Schellenberg, Gary David Albert
Insider Relationship: 4 - Director of Issuer
Insider Name:
Ceased to be Insider: Not Applicable
Sherk, Susan Bradley
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2010-12-09 Common Shares 460
Insider Name:
Ceased to be Insider: Not Applicable
Simpson, Matthew James
Insider Relationship: 4 - Director of Issuer
2010-09-20 Common Shares 0
-9-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
2010-12-29 Options (Common Shares) 550,000 550,000
Insider Name:
Ceased to be Insider: Not Applicable
Strauss, James Digby Ronald
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-02-10 Common Shares 20,000
Insider Name:
Ceased to be Insider: 2005-03-01
Torresan, Raymond
Insider Relationship: 5 - Senior Officer of Issuer
2004-02-16 Common Shares Threefold Ventures
Inc.
10,000
Insider Name:
Ceased to be Insider: Not Applicable
Tough, Thomas Robert
Insider Relationship: 4 - Director of Issuer
Insider Name:
Ceased to be Insider: Not Applicable
Warr, Donald James
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-12-16 Common Shares 39,000
2011-09-22 Common Shares Spousal RRSP 15,000
-10-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Wells, Chad
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-04-07 Common Shares 35,000
2010-12-08 Common Shares RESP 3,500
Insider Name:
Ceased to be Insider: Not Applicable
Winter, Stephen Lawrence
Insider Relationship: 8 - Deemed Insider - 6 Months before becoming Insider
2011-10-05 Common Shares 42,000
2011-10-05 Common Shares Spousal 2,800
ALTIUS INSIDERS
Insider Information by Issuer - View Results
Issuer name : altius ( Starts with )
Date range : January 1, 1995 - January 27, 2012
2012-01-27 22:58 ET
Issuer Name: Altius Minerals Corporation
Legend: Insider's Relationship to Issuer: 1 - Issuer, 2 - Subsidiary of Issuer, 3 - 10% Security Holder of Issuer, 4 - Director of Issuer, 5 - Senior Officer of Issuer, 6 - Director
or Senior Officer of 10% Security Holder, 7 - Director or Senior Officer of Insider or Subsidiary of Issuer (other than in 4,5,6), 8 - Deemed Insider - 6 Months before
becoming Insider.
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Altius Investments Limited
Insider Relationship: 2 - Subsidiary of Issuer
Insider Name:
Ceased to be Insider: Not Applicable
Altius Minerals Corporation
Insider Relationship: 1 - Issuer
2012-01-24 Common Shares 0
Insider Name:
Ceased to be Insider: Not Applicable
Baker, John
Insider Relationship: 4 - Director of Issuer
2011-08-24 Common Shares 515,300
2011-08-24 Common Shares Brightsun Holdings
Inc.
50,000
2011-08-24 Options (Common Shares) 62,500 62,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
-1-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2010-03-18
Butler, Roland Wayne
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2010-01-15 Common Shares 735,450
2003-06-03 Common Shares Lauren Exploration
Ltd.
250,000
2009-12-08 Options (Common Shares) 250,000 250,000
Insider Name:
Ceased to be Insider: Not Applicable
Dalton, Brian
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2011-09-14 Common Shares 968,073
2003-01-02 Common Shares 10587 Newfoundland.
Ltd.
250,000
2005-04-07 Common Shares RRSP Account 177,702
2011-09-14 Options (Common Shares) 125,000 125,000
2010-09-21 SARs (cash) 250,000 250,000
2005-06-28 Warrants (Common Shares) 0 0
Insider Name:
Ceased to be Insider: 2004-08-31
David W. Tice & Associates, LLC
Insider Relationship: 3 - 10% Security Holder of Issuer
2004-08-31 Common Shares Prudent Bear Fund 1,894,700
2003-07-14 Warrants (Common Shares) Prudent Bear Fund 578,500 578,500
-2-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Lewis, Benjamin Gerard
Insider Relationship: 5 - Senior Officer of Issuer
2011-09-07 Common Shares 10,000
2009-10-09 Common Shares RRSP 3,050
2011-09-07 Common Shares Spousal Account 18,000
2011-09-07 Options (Common Shares) 75,000 75,000
2010-09-21 Rights SARs (Rights) 150,000 150,000
Insider Name:
Ceased to be Insider: Not Applicable
Mifflin, Frederick James
Insider Relationship: 4 - Director of Issuer
2011-11-28 Common Shares 15,716
2011-11-28 Options (Common Shares) 62,500 62,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
Insider Name:
Ceased to be Insider: Not Applicable
Sherk, Susan Bradley
Insider Relationship: 4 - Director of Issuer
2011-11-28 Common Shares 9,029
2011-11-28 Options (Common Shares) 47,500 47,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
-3-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Strauss, James Digby Ronald
Insider Relationship: 4 - Director of Issuer
2010-10-27 Common Shares 24,340
2011-10-13 Rights DSUs (Rights) 6,776 6,776
Insider Name:
Ceased to be Insider: 2010-10-27
Thurlow, John Geoffrey
Insider Relationship: 4 - Director of Issuer
2010-10-12 Common Shares 15,640
2010-09-17 Common Shares Bacchus Holdings Inc. 1,163,512
2010-09-20 Options (Common Shares) 87,500 87,500
2004-10-07 Warrants (Common Shares) 0 0
Insider Name:
Ceased to be Insider: 2004-01-01
Tognetti, John
Insider Relationship: 3 - 10% Security Holder of Issuer
2003-07-15 Common Shares -9,400
2003-06-27 Common Shares noelle tognetti 1,465,000
-4-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Warr, Donald James
Insider Relationship: 4 - Director of Issuer
2011-11-28 Common Shares 84,816
2008-10-29 Common Shares RSP 8,900
2011-11-28 Options (Common Shares) 62,500 62,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
Insider Name:
Ceased to be Insider: Not Applicable
Wells, Chad
Insider Relationship: 5 - Senior Officer of Issuer
2011-11-28 Common Shares 43,500
2010-02-26 Common Shares RRSP 34,900
2011-11-28 Options (Common Shares) 75,000 75,000
2010-09-21 Rights SARs (Rights) 150,000 150,000
2005-07-10 Warrants (Common Shares) 0 0
Insider Name:
Ceased to be Insider: Not Applicable
Winter, Stephen Lawrence
Insider Relationship: 5 - Senior Officer of Issuer
2011-08-09 Common Shares 30,000
2011-08-09 Common Shares RRSP Account 2,100
2011-08-08 Options (Common Shares) 75,000 75,000
-5-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
2010-09-21 Rights SARs (Rights) 150,000 150,000
-6-
When the dam was finished in 1963, the station had a total capacity of 225 MW with two 115-mile (185 km) long transmission lines at 230,000 volts (or 230 kV), with remote switching at the far end from the station. Twin Falls power was essential to the later power development at Churchill Falls. It helped open up the area and supplied the power required during the construction phase of the project. So a 225 MW dam was built to essentially run two iron ore mines, and infrastructure. Curiously, Brinco was also the corporation that signed the much lamented 1969 Power Contract with Hydro Quebec for the Upper Churchill.
Fast forward almost 50 years, and here we are again - building a dam for mining. Today there are 17 some mines being developed in the Labrador Trough. A few American. A few European. One Brazilian. Two Indian. The remaining six or so Chinese. Its a virtual microcosm of the developing world's strangle hold on the New World financial order of things. The problem for the developers, read juniors and their merchant backers, is the lack of necessary infrastructure to convert promising mining deposits to full scale operations in their own right.
Traditionally, in Newfoundland and Labrador, private businesses have to arrange their own power for such activities as mining. The Twin Falls dam is one example, but there are many others. The problem with that approach for the developers is it adds a massive cost onto the bottom line of each tonne of ore mined, and makes the mining of these deposits unprofitable. That was Credit Suisse's analysis as well when they did a direct comparison to Consolidated Thompson's mine and the developing Kami project which is owned by Alderon http://tinyurl.com/79ey28b . Yes, the same Alderon that has Danny Williams as its "special advisor" to the Chairman of the Board. Credit Suisse essentially says that Alderon- and you could put all the mines developing in Labrador on the same page- is an attractive deposit but lacks the necessary infrastructure to make it profitable. Therefore, they rate it as "speculative".
Alderon is a good example of what is happening with the mines in Labrador, and their connection to the Muskrat Falls development. For starters, here is a look at the insiders who have an ownership interest in Alderon Iron Corp from SEDI, System for Electronic Disclosure by Insiders, Listed Below. Now have a look at the insider report on ownership for Altius, which sold its rights to the Kami project to Alderon for a roughly 40% stake in Alderon Iron Corp, Listed below .
The first thing you are likely to notice is that Altius' directors have their own interest in Alderon - apart from Altius' corporate share of Alderon's ownership. You will also recognize names there from both the Progressive Conservative Party and Liberal Party of Newfoundland. You will notice the recent purchase by Liberty of Alderon shares for $40 million, which will allow the Kami project to be further developed. You will notice the shares held by Mark Morabito - a large number of shares. Mr Morabito is the Chairman and Chief Executive Officer of The Exploration Group, a privately held company headquartered in Vancouver. If you check the Exploration Group's web site you will notice it lists Alderon as one of its companies. Mr. Morabito also sits on the Board of Alderon as its Executive Chairman.
You will also find a gentleman by the name of Stan Bharti as Vice Chairman of Alderon. In reality, Stan Bharti runs the privately owned Forbes and Manhattan Group. A Toronto-based merchant bank specializing in identifying resource projects around the world, providing them with seed capital, taking them public, often arranging foreign capital acquisition of them, and then getting out. Mr. Bharti is a world class player, and his Advisory Board backs that up : General John Abizaid (ret) US Army; General Jay Garner (ret) US Army; General Ron Hite (ret) US Army; General Lewis MacKenzie (ret) Canadian Army; General Sir Michael Rose (ret) British Army (SAS); Larry King (ret) US entertainment legend; Hon Pierre Pettigrew (ret) Canadian Federal Liberal politician; Bernard Wilson; and Peter Boot.
In reality, Forbes and Manhattan appear to run The Exploration Group, which in turn runs Alderon. As an example, the press release announcing Danny Williams appointment to Alderon's Board listed a Toronto office that in reality is the office of Black Iron Inc, a subsidiary of Forbes and Manhattan. Its Vancouver office is in fact the corporate office of The Exploration Group. You get the idea. These companies are one and the same. The bottom line to these gents is "increasing shareholder value". In this case, as there are no shareholders in The Exploration Group and Forbes and Manhattan, they mean "increase the share value so we can make an astronomical return when it gets off the ground." Fair enough. That is what business is about, and the gents at Forbes and Manhattan are doing it all over the world.
What is interesting on the Newfoundland and Labrador level is the politicization of Alderon's management team. I was present at the October PC convention when Danny Williams took the stage to give an emotional presentation on the service of one Garry Norris. He let it be known that Norris was the go to guy for any research or any problem, and that he had served the Party well over the years. Williams let it be known then that Norris was leaving public service and gave him a present from the Party for his service. Norris' retirement was officially announced on November 30, 2010 and took effect on December 3, 2010 - the same day as Danny Williams last day in office. Norris was Deputy Clerk of Executive Council under Brian Tobin and Clerk under Beaton Tulk. Roger Grimes removed him from that position when he became Premier. Norris took on the position of Executive VP of Government and Community Affairs at Alderon effective July 4, 2011 - barely 6 months after retiring from the government. Three days later he is registered as holding 250,000 options/shares in Alderon at a value today of over $800,000.00.
The same announcement from Alderon appointed Todd Burlingame as Executive VP for Environment and Aboriginal Affairs. He also received the 250,000 share handshake two days after he signed on. His duties are described in the release: "Mr. Burlingame will be responsible for all environmental permitting aspects to develop the Kamistiatusset (”Kami”) Project through to production, including acquiring all required environmental approvals. He will also have a lead role in Aboriginal Relations." Just so happens that Burlingame's previous position, that he left to take this one, was Manager of Environment and Aboriginal Affairs with Nalcor.
The Board at Alderon is really reflective of what is at work in Labrador. We've already covered the real power behind the group - Stan Bharti. We have covered his head of The Exploration Group - Mark Morabito. You have Matt Simpson who also doubles as Forbes and Manhattans man in Toronto heading Black Iron Inc, and who is working with the famous Larry King on a mine in the Ukraine (Maybe that's how Danny Williams got that spot on the Larry King show). There is Bruce Humphrey who is a Forbes/Exploration Group man and sits on several of its subsidiaries boards - including Cross Hair Exploration and Minerals which is currently developing an uranium project in Labrador (the
Nunatsiavut Assembly just lifted a ban on uranium exploration there). There is Brad Boland who was Brian Tobin's right hand man at Consolidated Thompson. Then of course there is Brian Dalton and John Baker from Altius. That is the same Dalton and Baker that headed the failed Newfoundland and Labrador Refining Corporation. The same two that were involved in Aurora Energy that is also developing a uranium property in Labrador. The same John Baker that owns Ottenheimer and Baker that has the Newfoundland and Labrador Department of Natural Resources as its key client.
That brings us to the Board's latest addition - Danny Williams. The Danny Williams that went to the Middle East with Kathy Dunderdale to try and get investors to bail out Dalton and Baker's Refining Corp. The same Williams that placed MacDonald as Chair of Nalcor. The same Williams that while in office refused to do a deal with Hydro Quebec on the Lower Churchill, but endorsed Altius' bid to fund it as one of three. The boss of Kathy Dunderdale, who as the new Premier took a trade mission to China to promote junior mining companies. Three of those should sound familiar: Alderon; Altius; and Century. Knowing the players one big question remains: Why do they need Danny Williams as a "Special Advisor" to the Chair? The Forbes and Manhattan/Exploration Group really needs special advice from Danny Williams? Is Danny part of the deal? Hard to say with a public company that sells shares to anyone on the exchange. Surely it's not a political necessity to have the former Premier on the Board. There is his connection to the Muskrat Falls deal. They do need the power. He does have business connections in St. John's, but do they really need him?
The truth is Forbes and Manhattan has done something similar to this before - except it was with former Liberal Premier Brian Tobin. In 2005 Stan Bharti and a group of investors raised a private placement of $1 million to get then Thompson Consolidated - Lundmark Gold Mines off the ground. Mr. Bharti then took over briefly as President. Despite Brian Tobin's recent comments that his old political contacts in China saved the mines bacon http://tinyurl.com/6n5h77n it was a determined effort by Bharti's Forbes and Manhattan Group that kept the struggling company alive. They outline this as one of their accomplishments:
Recent Successes
Forbes & Manhattan Builds Assets
Consolidated Thompson Iron Mines
(Created)
- Incubated Consolidated Thompson in 2005 as a grassroots exploration stage iron ore company with assets in Northern Quebec
- Completed scoping study, 3 feasibility studies, and secured financing and off-take with China
- Raised approximately $1 billion in development capital over 5 years
- Consolidated Thompson was acquired by Cleveland Cliffs in May 2011 for $4.9 billion or $17.25 per share representing a return of over 7700% to shareholders
In 2006 Tobin was appointed as the Chair of Thompson Consolidated. He had previously served on a number of boards including Dean MacDonald's Persona Communications, and Canadian Imperial Ventures - a Danny Williams interest. Bernard Wilson was appointed to Thompson Consolidated's Board at the same time. When WISCO (China) invested over $200 million in the corporation Bharti and Bruce Humphrey stepped down from its Board and Chief Financial Officer Brad Boland resigned his position as well. If you check the team at Alderon you will see these three gentlemen now play key roles in this corporation.
The three big problems holding back mining development in Labrador have been power, rail, and ports. In 2010 the rail question was answered to some extent by the completion of the Bloom Lake Railway. A creation of Thompson Consolidated the $100 million railway was described by Tobin: "We have developed our infrastructure, in this case the railway, and we said from the get-go, 'this railway will be available to other users if and when other mining projects are brought to reality.'" Of course the railway is now owned by US based Cliff Resources, and operated by long term agreement with US based Genesee and Wyoming. There remains considerable debate regarding the ability of Quebec's ports to handle projected iron ore originating in Labrador and shipping to Asia and/or Europe.
The power part of the equation is still in question.
ALDERON INSIDERS
Insider Information by Issuer - View Results
Issuer name : alderon ( Starts with )
Date range : January 1, 1995 - January 27, 2012
2012-01-27 22:40 ET
Issuer Name: Alderon Iron Ore Corp.
Legend: Insider's Relationship to Issuer: 1 - Issuer, 2 - Subsidiary of Issuer, 3 - 10% Security Holder of Issuer, 4 - Director of Issuer, 5 - Senior Officer of Issuer, 6 - Director
or Senior Officer of 10% Security Holder, 7 - Director or Senior Officer of Insider or Subsidiary of Issuer (other than in 4,5,6), 8 - Deemed Insider - 6 Months before
becoming Insider.
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2009-12-08
Algie, Anita Young
Insider Relationship: 4 - Director of Issuer
2006-12-30 Common Shares 88,000
2006-01-25 Options (Common Shares) 50,000 50,000
Insider Name:
Ceased to be Insider: Not Applicable
Altius Minerals Corporation
Insider Relationship: 3 - 10% Security Holder of Issuer
2010-12-15 Common Shares 2260761 Ontario Inc. 584,000
2011-02-11 Common Shares Altius Resources Inc. 0
2010-12-15 Warrants (Warrants) 2260761 Ontario Inc. 150,000 150,000
Insider Name:
Ceased to be Insider: Not Applicable
Altius Resources Inc.
Insider Relationship: 3 - 10% Security Holder of Issuer
-1-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
2011-02-11 Common Shares Altius Investments
Limited
32,285,006
Insider Name:
Ceased to be Insider: Not Applicable
Amisano, Terry Michael
Insider Relationship: 3 - 10% Security Holder of Issuer
2003-11-14 Common Shares 0 0
Insider Name:
Ceased to be Insider: 2011-11-28
Atwal, Sonya
Insider Relationship: 5 - Senior Officer of Issuer
2011-09-16 Common Shares 25,000
2010-12-29 Options (Common Shares) 120,000 120,000
2011-05-24 OTC Calls (including Private
Options to Purchase) (Common
Shares)
0 0
Insider Name:
Ceased to be Insider: 2005-04-29
Bachman, Richard Lynn
Insider Relationship: 5 - Senior Officer of Issuer
2004-02-05 Common Shares 840,000
Insider Name:
Ceased to be Insider: Not Applicable
Baker, John
Insider Relationship: 4 - Director of Issuer, 6 - Director or Senior Officer of 10% Security Holder
2011-02-09 Options (Common Shares) 400,000 400,000
-2-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Bharti, Stan
Insider Relationship: 4 - Director of Issuer
2011-12-20 Common Shares FORBES &
MANHATTAN
2,100,000
2011-02-09 Options (Common Shares) 900,000 900,000
Insider Name:
Ceased to be Insider: Not Applicable
Boland, Brad James
Insider Relationship: 5 - Senior Officer of Issuer
2010-03-03 Common Shares 250,000
2011-02-09 Options (Common Shares) 300,000 300,000
Insider Name:
Ceased to be Insider: Not Applicable
Burlingame, Todd
Insider Relationship: 5 - Senior Officer of Issuer
2011-06-13 Common Shares 0
2011-06-13 Options (Common Shares) 250,000 250,000
Insider Name:
Ceased to be Insider: Not Applicable
Dalton, Brian
Insider Relationship: 4 - Director of Issuer, 6 - Director or Senior Officer of 10% Security Holder
2011-02-09 Options (Common Shares) 400,000 400,000
-3-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2009-09-22
Doctors Investment Group Ltd.
Insider Relationship: 3 - 10% Security Holder of Issuer
2009-12-04 Common Shares 0 0
Insider Name:
Ceased to be Insider: Not Applicable
Dunn, Christopher Noel
Insider Relationship: 4 - Director of Issuer
2012-01-13 Common Shares 0
2012-01-13 Options (Common Shares) 0 0
Insider Name:
Ceased to be Insider: 2010-03-03
Durno, Jeff
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2010-02-16 Subscription Rights (Common
Shares)
Natgar Capital Corp. 20,500 20,500
Insider Name:
Ceased to be Insider: Not Applicable
Eldem, Tayfun
Insider Relationship: 5 - Senior Officer of Issuer
2011-09-07 Common Shares 0
2011-09-07 Options (Common Shares) 1,000,000 1,000,000
Insider Name:
Ceased to be Insider: 2010-03-03
Emprise Capital Corporation
Insider Relationship: 3 - 10% Security Holder of Issuer
2009-11-25 Common Shares 3,500,000
-4-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2010-12-13
Gleeson, Patrick James
Insider Relationship: 5 - Senior Officer of Issuer
2010-03-03 Common Shares 250,000
2010-11-08 Options (Common Shares) 200,000 200,000
Insider Name:
Ceased to be Insider: 2004-02-09
Hanson, Kevin R.
Insider Relationship: 3 - 10% Security Holder of Issuer
2004-02-09 Common Shares 0 0
Insider Name:
Ceased to be Insider: Not Applicable
Humphrey, Raymond Bruce
Insider Relationship: 4 - Director of Issuer
2010-03-03 Common Shares 500,000
2011-02-09 Options (Common Shares) 500,000 500,000
Insider Name:
Ceased to be Insider: Not Applicable
Jardine, Gerald Levelle
Insider Relationship: 3 - 10% Security Holder of Issuer, 4 - Director of Issuer, 5 - Senior Officer of Issuer
2004-02-09 Common Shares 6,730
-5-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2008-01-01
Kowalchuk, John
Insider Relationship: 4 - Director of Issuer
2006-01-25 Options (Common Shares) 50,000 50,000
Insider Name:
Ceased to be Insider: Not Applicable
Lawson, Edward Martin
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2006-09-05 Common Shares 359,312
2006-04-28 Common Shares Minera Sucunduri 0
Insider Name:
Ceased to be Insider: Not Applicable
Lewis, Benjamin Gerard
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-02-04 Common Shares 0
Insider Name:
Ceased to be Insider: Not Applicable
Liberty Metals & Mining Holdings, LLC
Insider Relationship: 3 - 10% Security Holder of Issuer
2012-01-13 Common Shares 14,981,273
Insider Name:
Ceased to be Insider: Not Applicable
Marcotte, Simon
Insider Relationship: 5 - Senior Officer of Issuer
2010-12-13 Common Shares 101,000
2010-12-29 Options (Common Shares) 325,000 201,000
-6-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2009-12-08
Mohammed, Reza Ahmed
Insider Relationship: 5 - Senior Officer of Issuer
2008-01-10 Common Shares 610,000
2005-11-09 Common Shares Tellford Management
Ltd.
267,500
2006-01-25 Options (Common Shares) 420,000 420,000 420,000
Insider Name:
Ceased to be Insider: Not Applicable
Morabito, Mark Joseph
Insider Relationship: 4 - Director of Issuer
2012-01-26 Common Shares 3,095,000
2010-11-01 Common Shares Morabito Family Trust 0
2011-02-09 Options (Common Shares) 900,000 900,000
2012-01-26 OTC Puts (including Private
Options to Sell) Common Shares
(Common Shares)
-425,000 -425,000
Insider Name:
Ceased to be Insider: Not Applicable
Norris, Gary
Insider Relationship: 5 - Senior Officer of Issuer
2011-07-04 Common Shares 0
2011-07-04 Options (Common Shares) 250,000 250,000
-7-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Paine, Sheila Margaret
Insider Relationship: 5 - Senior Officer of Issuer
2012-01-27 Common Shares 0
2012-01-26 Options (Common Shares) 100,000 100,000
Insider Name:
Ceased to be Insider: 2011-12-01
Penney, Brian
Insider Relationship: 5 - Senior Officer of Issuer
2011-05-07 Common Shares 0
2011-10-03 Options (Common Shares) 500,000 500,000
Insider Name:
Ceased to be Insider: 2010-12-13
PONTIUS, Jeffrey A.
Insider Relationship: 4 - Director of Issuer
2010-03-03 Common Shares 200,000
2010-11-08 Options (Common Shares) 200,000 200,000
Insider Name:
Ceased to be Insider: Not Applicable
Porter, David James
Insider Relationship: 4 - Director of Issuer
2011-02-09 Options (Common Shares) 300,000 300,000
-8-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Potvin, Bernard
Insider Relationship: 5 - Senior Officer of Issuer
2011-11-14 Common Shares 0
2011-11-14 Options (Common Shares) 250,000 250,000
Insider Name:
Ceased to be Insider: Not Applicable
Santorelli, Keith
Insider Relationship: 5 - Senior Officer of Issuer
2011-11-28 Common Shares 0
2011-11-28 Options (Common Shares) 300,000 300,000
Insider Name:
Ceased to be Insider: 2005-03-04
Schellenberg, Gary David Albert
Insider Relationship: 4 - Director of Issuer
Insider Name:
Ceased to be Insider: Not Applicable
Sherk, Susan Bradley
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2010-12-09 Common Shares 460
Insider Name:
Ceased to be Insider: Not Applicable
Simpson, Matthew James
Insider Relationship: 4 - Director of Issuer
2010-09-20 Common Shares 0
-9-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
2010-12-29 Options (Common Shares) 550,000 550,000
Insider Name:
Ceased to be Insider: Not Applicable
Strauss, James Digby Ronald
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-02-10 Common Shares 20,000
Insider Name:
Ceased to be Insider: 2005-03-01
Torresan, Raymond
Insider Relationship: 5 - Senior Officer of Issuer
2004-02-16 Common Shares Threefold Ventures
Inc.
10,000
Insider Name:
Ceased to be Insider: Not Applicable
Tough, Thomas Robert
Insider Relationship: 4 - Director of Issuer
Insider Name:
Ceased to be Insider: Not Applicable
Warr, Donald James
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-12-16 Common Shares 39,000
2011-09-22 Common Shares Spousal RRSP 15,000
-10-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Wells, Chad
Insider Relationship: 6 - Director or Senior Officer of 10% Security Holder
2011-04-07 Common Shares 35,000
2010-12-08 Common Shares RESP 3,500
Insider Name:
Ceased to be Insider: Not Applicable
Winter, Stephen Lawrence
Insider Relationship: 8 - Deemed Insider - 6 Months before becoming Insider
2011-10-05 Common Shares 42,000
2011-10-05 Common Shares Spousal 2,800
ALTIUS INSIDERS
Insider Information by Issuer - View Results
Issuer name : altius ( Starts with )
Date range : January 1, 1995 - January 27, 2012
2012-01-27 22:58 ET
Issuer Name: Altius Minerals Corporation
Legend: Insider's Relationship to Issuer: 1 - Issuer, 2 - Subsidiary of Issuer, 3 - 10% Security Holder of Issuer, 4 - Director of Issuer, 5 - Senior Officer of Issuer, 6 - Director
or Senior Officer of 10% Security Holder, 7 - Director or Senior Officer of Insider or Subsidiary of Issuer (other than in 4,5,6), 8 - Deemed Insider - 6 Months before
becoming Insider.
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Altius Investments Limited
Insider Relationship: 2 - Subsidiary of Issuer
Insider Name:
Ceased to be Insider: Not Applicable
Altius Minerals Corporation
Insider Relationship: 1 - Issuer
2012-01-24 Common Shares 0
Insider Name:
Ceased to be Insider: Not Applicable
Baker, John
Insider Relationship: 4 - Director of Issuer
2011-08-24 Common Shares 515,300
2011-08-24 Common Shares Brightsun Holdings
Inc.
50,000
2011-08-24 Options (Common Shares) 62,500 62,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
-1-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: 2010-03-18
Butler, Roland Wayne
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2010-01-15 Common Shares 735,450
2003-06-03 Common Shares Lauren Exploration
Ltd.
250,000
2009-12-08 Options (Common Shares) 250,000 250,000
Insider Name:
Ceased to be Insider: Not Applicable
Dalton, Brian
Insider Relationship: 4 - Director of Issuer, 5 - Senior Officer of Issuer
2011-09-14 Common Shares 968,073
2003-01-02 Common Shares 10587 Newfoundland.
Ltd.
250,000
2005-04-07 Common Shares RRSP Account 177,702
2011-09-14 Options (Common Shares) 125,000 125,000
2010-09-21 SARs (cash) 250,000 250,000
2005-06-28 Warrants (Common Shares) 0 0
Insider Name:
Ceased to be Insider: 2004-08-31
David W. Tice & Associates, LLC
Insider Relationship: 3 - 10% Security Holder of Issuer
2004-08-31 Common Shares Prudent Bear Fund 1,894,700
2003-07-14 Warrants (Common Shares) Prudent Bear Fund 578,500 578,500
-2-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Lewis, Benjamin Gerard
Insider Relationship: 5 - Senior Officer of Issuer
2011-09-07 Common Shares 10,000
2009-10-09 Common Shares RRSP 3,050
2011-09-07 Common Shares Spousal Account 18,000
2011-09-07 Options (Common Shares) 75,000 75,000
2010-09-21 Rights SARs (Rights) 150,000 150,000
Insider Name:
Ceased to be Insider: Not Applicable
Mifflin, Frederick James
Insider Relationship: 4 - Director of Issuer
2011-11-28 Common Shares 15,716
2011-11-28 Options (Common Shares) 62,500 62,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
Insider Name:
Ceased to be Insider: Not Applicable
Sherk, Susan Bradley
Insider Relationship: 4 - Director of Issuer
2011-11-28 Common Shares 9,029
2011-11-28 Options (Common Shares) 47,500 47,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
-3-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Strauss, James Digby Ronald
Insider Relationship: 4 - Director of Issuer
2010-10-27 Common Shares 24,340
2011-10-13 Rights DSUs (Rights) 6,776 6,776
Insider Name:
Ceased to be Insider: 2010-10-27
Thurlow, John Geoffrey
Insider Relationship: 4 - Director of Issuer
2010-10-12 Common Shares 15,640
2010-09-17 Common Shares Bacchus Holdings Inc. 1,163,512
2010-09-20 Options (Common Shares) 87,500 87,500
2004-10-07 Warrants (Common Shares) 0 0
Insider Name:
Ceased to be Insider: 2004-01-01
Tognetti, John
Insider Relationship: 3 - 10% Security Holder of Issuer
2003-07-15 Common Shares -9,400
2003-06-27 Common Shares noelle tognetti 1,465,000
-4-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
Insider Name:
Ceased to be Insider: Not Applicable
Warr, Donald James
Insider Relationship: 4 - Director of Issuer
2011-11-28 Common Shares 84,816
2008-10-29 Common Shares RSP 8,900
2011-11-28 Options (Common Shares) 62,500 62,500
2011-10-13 Rights DSUs (Rights) 9,069 9,069
Insider Name:
Ceased to be Insider: Not Applicable
Wells, Chad
Insider Relationship: 5 - Senior Officer of Issuer
2011-11-28 Common Shares 43,500
2010-02-26 Common Shares RRSP 34,900
2011-11-28 Options (Common Shares) 75,000 75,000
2010-09-21 Rights SARs (Rights) 150,000 150,000
2005-07-10 Warrants (Common Shares) 0 0
Insider Name:
Ceased to be Insider: Not Applicable
Winter, Stephen Lawrence
Insider Relationship: 5 - Senior Officer of Issuer
2011-08-09 Common Shares 30,000
2011-08-09 Common Shares RRSP Account 2,100
2011-08-08 Options (Common Shares) 75,000 75,000
-5-
Date of Last Reported
Transaction(YYYY-MM-DD)
Security
Designation
Registered
Holder
Closing Balance Insider's calculated balance Closing balance of equivalent number
or value of underlying securities
2010-09-21 Rights SARs (Rights) 150,000 150,000
-6-
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