The previous post outlines the serious wrongdoings at Minera IRL (MIRL.cse), but what can we shareholders do about it? The answer is “a lot”, because unlike those unholy securities fraudsters Daryl Hodges and Jaime Pinto, who targeted MIRL in order to satisfy their own greed and strip assets out of the company, we shareholders don’t need to try to grab and own the company. We already own it, it’s just a case of taking control and monetizing it instead of letting it die.
The first task is A List of Concerned Shareholders (CS): Several of you have already written in stating that you’d like to add your name to a list, it’s time to get that list organized. With apologies, today’s post asks you to mail in again if you have done so already, but also asks any MIRL shareholder who would like to join the CS roster in order to ouster Diego Benavides from the company to send a mail to my mail address otto.rock1 AT gmail DOT com, or renrutkram AT gmail DOT com. You don’t have to include the number of shares you own, but it would be useful so if you supply that information I promise to keep it confidential.
Then begins the second task, we can begin the formal procedure to ask the questions to MIRL they currently refuse to answer. Under CS conditions, they must reply with details (something they refuse to do at the moment, for obvious reasons). When they are forced to answer the questions, this desk is confident it will become patently clear to one and all how Diego Benavides has broken all sort of securities and ethics rules. He hired his three close personal friends for high-paying executive roles for which they have no experience or qualifications. That is illegal in Peru, it is against the rules of the Lima Stock Market, it is against the rules of the CSE market, it is against the company’s own ethics rules. We then move the directors of the company to fire him with cause. If they refuse to do so, we get to December at the AGM and vote them all out, every last one of them.
Then the good things begin to happen: In their place, we appoint a receiver and that person takes the public company MIRL.cse into voluntary bankruptcy protection. At that point, Diego Benavides can no longer refuse to show the receiver the books inside the wholly-owned subsidiary company, Kuri Kullu, where his cash siphoning corruption has been taking place, and then his life falls apart. Previously he managed to keep the books from being audited, but that’s because Pinto and Hodges were obsessed with stealing everything for themselves and did not have shareholder best interest at heart. But we do, because we are the shareholders! We own this company and don’t mind putting it under temporary protection, because that will serve us best. The mine will continue to operate, profit made, and in Ollachea and Corihuarmi we have valuable assets that can be sold or developed at the choosing of the official receiver. He will also have liens on recovering any multi-million dollar sums stolen by Diego Benavides over the years via his Kuri Kullu black hole subsidiary (his house alone must be worth 2c per share to shareholders). Anyway, the receiver does his work and then distributes the cash to shareholders.
In other words, a successful and profitable exit strategy for MIRL shareholders, instead of watching the share price get beaten to zero by a corrupt CEO who will not be able to raise a single dollar of cash to build Ollachea.
Please mail (or mail in again) in with your details, fellow MIRL holders, with “MIRL CONCERNED SHAREHOLDER” in your title line. At this ad-hoc point you don’t need to provide solid evidence of holdings, everyone is invited on their word of honour. However defeatism is not allowed, because the plan is simple and effective: We shareholders take back this company, monetize its assets, distribute to ourselves and make a decent wedge of money in the process. Meanwhile, we hand a lesson to Diego Benavides he will never forget.