Iamgold finishes off Sanatana
I wrote about Sanatana last back in April of 2015 when they announced a court order requiring Iamgold to repay their legal expenses in the Watershed fiasco where Stephen Letwin tried to steal the Watershed property from Sanatana. The incredibly dubious legal theory of Iamgold was that by filing an easement request claiming that they needed the surface rights to the ground held in a Joint Venture with Sanatana they could pick up control of the ground that STA had invested $9 million in exploration. It was one of those really great theories - as bullshit theories go.
When the court finally got through laughing at the request of Iamgold, they scheduled a hearing in November of 2014. Iamgold didn’t have the guts to claim in open court what they claimed on paper so they folded. I said so and I know at least one person read the article I wrote because Iamgold fell apart like a cheap sweater.
In the latest and perhaps final chapter in the saga, it seems Stephen Letwin couldn’t steal the property legally so he’s trying to steal the property by bankrupting Sanatana.
In a press release put out just after the close on January 12, 2016, Sanatana says they are selling their interest in the Watershed property for “up to $5 million.” The press release is about as accurate as saying the Indians sold Manhattan for $24 in beads, and “other valuable considerations.”
Sanatana is giving away the project at cents on the dollar. The only consideration of management is paying off the $1.3 million in bills still unpaid. In reality they are trying to sell the project for just enough money to pay off the current bills. $2 million is cash and the remaining $3 million is confetti that may or may not exist down the road someday.
I get really upset because over the last 15 years I’ve been lied to so many times I can’t count. Sanatana management didn’t exactly lie to me, they just didn’t tell me what I needed to know so I could fill in my readers with what they need to know to make reasonable investment decisions. They lied by omission. I needed to know a year ago that they were running out of money just keeping the doors open. This stock was the perfect call on the price of gold. All management had to do was keep the doors open.
All management had to do was keep the doors open.
Well, they ran themselves out of money, didn’t finance when they had a $.20 stock eighteen months ago and all they have accomplished was to open the door for Letwin to steal the project by buying it from a broke company with a gun held to their heads. Letwin must be laughing his ass off. He pissed away more money in legal fees in his bullshit easement request than he has to pay for the property.
Investors have one last opportunity for revenge. I own a lot of shares in STA; I bought them in the open market over the past eighteen months. If STA could keep the doors open, the Watershed project is the best call on gold I know of. They couldn’t and all of the Sanatana shareholders have been screwed.
Not that the Iamgold shareholders are any better under the Letwin regime. The shares are down 90% since 2011. If I were being offered Iamgold shares for my Sanatana shares, I’d opt for a handful of glass beads instead. I wouldn’t give you a bushel basket filled with lukewarm elephant farts for all of Iamgold as long as Letwin is running the show. I’m not sure what is the most unethical, him filing the easement request knowing it was utter fiction or throwing pennies at the feet of Sanatana management in the belief they have to take it.
But current shareholders should read the press release carefully. There will be a vote on March 8th for shareholders to approve the agreement. Two thirds of shareholders attending the meeting or voting by proxy have to agree to give away the project for nothing for the deal to go through.
I know how I’m going to vote. I’d far rather see Sanatana go into bankruptcy than to give the project away for peanuts to a prick bastard like Stephen Letwin. Thieving shouldn’t be encouraged.