have asked for and been given permission to post McPhie’s mail on the
blog and therefore, by way of fair right to reply, it is presented with
no further IKN comment or editorial position. Read on:
and I do not know one another but I thought I should take a few minutes
and respond to the recent communication and comments you have made
and our decision to launch legal action against the poster “Ering” who
has been recently commenting on us on Stockhouse. I serve as the CEO of
Curis and was responsible for taking the company public in 2010 and
guiding the development of the company over
the past 2 +years.
not normally engage in blog chatter because I don’t have the time and do
not see it creating much in the way of shareholder value which, of
course, is what I am paid to do.
are clear on our motivations to take “ErinG” to task in this action, I
would like to provide the following context for you. Hopefully you will
take the time to read this.
still a private company at the time, purchased the Florence Copper
property in December of 2009. I took over as President of the company
in March of 2010.
my first activities as the new President was to travel to the site, meet
with local stakeholders and to get a sense and appreciation of the
setting we were going to be operating in. My
early conversations with the Town of Florence and our neighbors to the
project were very positive and supportive. It was on this basis that we
started to move forward with planning, permitting and early development
of our project.
In May of 2010, 4, 000 + acres of land around us was sold to an investment group from San Diego and New York.
It was shortly after this land neighboring us changed hands that the tenor within the area began to change.
not bore you with all the details but since then, several well financed
corporate interests have launched an intense and well-funded public
relations campaign against our company and the
project. Their apparent reason for opposing the project: they believe
our development would impact their ability to build residential homes
on their neighboring property. I might point out that building new
homes in central Arizona, when foreclosures rather
than building permits are the norm, is not really a viable proposal
according to most commentators today. We believe there is no basis for
their claims that our project would in any way harm property values and
in fact all of our independent assessment work,
the work of the regulatory agencies and others confirm the project is
safe, would both provide significant new taxes, jobs and revenue to the
area and actually attract new residents to the community and thus
support the housing market.
campaign launched by these interests has led to a lot of misinformation
and misunderstandings locally and in the investment community.
LINK TO ERING:
Now as a
long time commentator and professional who is knowledgeable of the
mining industry and junior public companies you will know that many
opponents of our industry, be it NGO’s, or competing
corporate or private interests, have figured out that one the
vulnerabilities of public companies is misinformation leading to
misperceptions of events or facts in the public market place. And, for
some, one of the ways in which groups have acted to negatively
impact share price is to go on the blogs and sites like Stockhouse and
spread misinformation. This can create confusion with investors and can
negatively impact share price.
In referring to the tactics of Curis targeting its bashers….I would ask you this:
- If you believed your own company was
under attack by interests who are benefitting from spreading
misinformation would you want to do something about it?
- Further, if these attacks were being
launched using pseudonyms and/or through third parties so they could not
held accountable would you want to know who was in behind it?
We do not know who ErinG is, but through this recent legal action we will hopefully be able to find out.
launching this action, there have been even more anonymous posters on
Stockhouse saying all sorts of things about us. Indeed, this has been
going on for the last year. We ignore most of
them and do not complain to anyone about it. However, when something
is posted that is as egregious as what ErinG was saying we felt we had
case we are pursuing, ErinG stated that our permit applications had been
rejected when in reality we expect to receive our State and federal
permits soon and any suggestions that they had
been rejected are false and misleading. In cases like this, we felt we
had to act to protect our interests and, ultimately, our shareholders.
You may disagree with this approach and I am sure others will as well.
However, with what information we had in
front of us at the time, we felt it was necessary.
will manage our opponents going forward through whatever means we can
and have always tried to take the high road in our dealings with the
public. We did not seek adversaries here but in the
end you have to deal with the cards you are dealt as best you can. The
company is now full financed for the first phase of development, our
permits will hopefully be in hand in the very near term and we are
advancing the project forward despite very weak
public markets. Ultimately we will be judged by our ability to execute
this development in a timely manner and hopefully this “noise” will
soon become a memory.
being such a vocal critic of Curis, without taking the time to
understand the context of this case and why we have taken the action we
have, I believe you are only helping those who stand to
gain from using this electronic medium to do harm to public companies
in our sector and, ultimately, shareholders.
Respectfully,Michael McPhiePresident and CEO
Curis Resources Ltd.