Why are so many junior mining exploreco boards of directors populated by idiots? Take for example Labrador Gold (LAB.v), which recently decided to commit corporate suicide in exchange for four million dollars. Consider that:
- Near neighbour New Found Gold (NFG.v) is one of the venture exchange pumpjobs of the year and now up around the half billion dollar market cap level.
- It’s run by Collin Kettell (too many Ls) of Palisades and all the Palisades crew are on board, not forgetting P.T. Barnum PhD himself.
- The stench of this one reaches the Southern Hemisphere. They’ve made untold fortunes from their founder stock. Hey, 50m papers priced at 1c makes your entry point look expensive, retail sucker.
- Let us be clear, these are not nice people. Collin Kettell (too many Ls) is one of those you meet and think “oh wow look at you, dead-eyed sociopath” within seconds. It’s visceral and of course, he attracts birds of his feather. On the subject, Paul Matysek’s great photo of when he wasn’t a fat louse is still up on the NFG website and good for a giggle.
- However, instead of realizing that aggressive sociopathic empire-builders may pose a potential threat to the well-being of a near neighbour exploreco’s share price, those sweet and nice and caring people running Labrador Gold (LAB.v) decide to roll out the red carpet and welcome them in through the front door. They gave Palisades a full warrant for each share too, it’s jaw-droppingly dumb.
- And since then, wow what is this? Palisades has also been buying on the open market! And wow…why is it that the price…can’t seem to move up now… even with…all this extra volume…now Kai…why might that be…?
It beggars belief that a board of directors could let this happen without so much as a hint of push back. However, and unlike the abject naivete on show at board level, Peter Vermeulen of Plethora is under no illusions. A long-term backer of LAB the company, his immediate reaction has been to dump 2m of his large position and quite right too, I would be livid at these idiots as well, Peter.
Many times I wrote the NFG label on a non-functioning item because it was NO FUCKING GOOD!
Thank you for that.
Why would this be dumb? In June they were raising money @ 17.5 cents per unit and now they are raising money @ 54 cents, so three time as much. No wonder they jumped at the opportunity.
And “longterm backer” Peter Vermeulen was out after a bit more than 4 months. Also very logical given the profit he could take after such a short time plus the warrants that he probably still has. I don’t see why he would be livid if he’s carrying a few big bags on the way to the bank.