With the news that the Hodges asset-strippers running Minera IRL are applying to de-list from the TSX, effective November 10th, here’s what SP Angel thinks of the move in its follow-up note this morning. Link here.
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Minera
IRL (MIRL LN) SUSPENDED – Please vote to sack the board of Minera IRL
Limited. We believe they are not working in the best interest of
shareholders
- We
view today’s statement as potentially disingenuous and potentially
misleading for investors who might not know more about the current
situation at Minera IRL.- The
board of Minera IRL Limited report that the company has applied to
delist from the TSX in Canada. TSX are to initiate an expedited
delisting review for failure to comply with the TXS’s continued listing
criteria.- It
is our view that news of this review plays very neatly into the hands
and strategy of the Minera IRL Limited board who appear unusually keen
to allow the company to delist in each market on any regulatory pretext.- The
statement also points out that the company’s admission to AIM will also
be automatically cancelled should the shares be suspended for a period
of six months. While this is strictly true, we believe the board should
be focussed on making more effort to reinstate the shares and to
prevent delisting on AIM and the TSX.- Today’s
statement claims that “due to the actions undertaken by the manager of
its Peruvian operating subsidiaries, there was a temporary compromise of
control of those entities”.- It
is our view that Diego Benavidez, who runs Minera IRL SA, is acting in
the best interests of Minera IRL’s shareholders and the Peruvian
community, whose support is essential. Mr Benavidez has sold gold held
by Minera IRL SA with funds being used to ensure that Minera IRL SA and
Limited meet its obligations in Peru in order to prevent a potential
default situation. There is no sense of any shortage of cash within the
business.- We
also view the statement of cancelling the admission to AIM as
scaremongering and potentially misleading as we, again, view the
situation as eminently resolvable.- We
believe that the Board of Minera IRL Limited are not working in the
best interest of shareholders to resolve the issues which might lead to
the cancellation of its listings.Conclusion: We conclude that shareholders should post their votes at the forthcoming EGM in favour of changing the board as petitioned.*
SP Angel analysts are expressing their own views and opinions in this
analysis. SP Angel has no corporate connection with Minera IRL or its
subsidiaries. SP Angel holds no shares in Minera IRL and does not have
any current financial arrangements with the company.