I agreed with Poly and sent the following letter today to the tsx, perhaps if more of us do this we might have an outside chance of getting some action.
"My family and I are shareholders of record with Noront Resources a company that trades on the TSX Venture Exchange. On October 28th 2008 Noront held its AGM, this AGM followed a lengthy and acrimonious proxy battle, and the result of the proxy was that the majority of the retail investors aligned with the Board of Directors and the CEO Richard Nemis against the dissident group led by Rosseau Asset Management. One day prior to the AGM the shareholders were advised that the Board of Directors had reached agreement with the dissident shareholders and that the outcome would be the resignation of the CEO and the appointment of a new Board of Directors.
Yesterday after two weeks in office the new Board and the interim joint CEO’s , Paul Pariotto and Joseph Hamilton sent out a news release advising shareholders that it was their intent to “offer by way of private placement , a maximum of 25,000,000 “flow through” common shares at a price per share of $0.80 for gross proceeds up to $20million. The reason given was to fund ongoing exploration work at McFaulds Lake on the basis that they will require $10-$20 million per year. However working capital (in the treasury) at the end of October was approximately $25 million.
Why given the resources in the treasury was there a need for additional financing, it is our opinion as shareholders that the Board failed to justify the need for a private placement at this time.
Secondly it is our opinion the price set for these shares is given at a large discount to the underlying value of the Corporation. The issuing of these flow through shares at $0.80 grossly fails to reflect the value of the Corporation as identified by Noront in its recently released NI 43-101
We concur with other shareholders who have previously written to you in that I also believe that a review of share trading over the past months may show activity designed to artificially drive down Noront’s share price thereby permitting a below fair market issuing of options and private placement..
As concerned shareholders we would appreciate the TSX reviewing the recent activity of the trading in shares of Noront Resources., and the actions of the new board of directors with regards this private placement."
We have to do something it's either that or rollover and hope they use vaseline
GLTA
Joe
