19th of November 2021
Our company suffered a blow this week with Mr Elfer Bravo revealing that he unilaterally cancelled his contract and purchase option with our subsidiary AMP over his 4 concessions of 2200 Ha. He
then corruptly induced a Public Notary to endorse that cancellation. He has subsequently lodged the cancellation with Sunarp, the Peruvian Government administrator of mining titles.
We have taken legal advice and that advice is that our legal position is very strong. The claims justifying the cancellation are spurious and the manner in which the cancellation was performed is in
breach of the terms of our contract. We have written to Bravo telling him we hold him responsible for all costs and consequences of his illegal actions. We shall seek an interim ruling that the
cancellation was wrong in law which, when granted, will enable us to register that ruling on the titles and effectively block any further dealings including transfers.
We shall then initiate a civil legal action to claim as yet unspecified, but substantial damages from Bravo.
In the meantime, our Peru team have now negotiated an access agreement with the informal
graziers through a family member who is trying to become Mayor of the local town and we have our full and complete permission to explore over 3000 Ha, noting that 800 Ha of the exploration lease
relate to concessions AMP1, held 100% by our subsidiary AMP.
We can further report, on a positive note, that access agreements to Crucero have been finalized and work has commenced on setting up the camp and security to commence small scale mining
before the end of November 2021. Recent bulk samples graded at up to 7.6% Copper.
Further, the executive team has reacted to the ambush Bravo cancellation by fast-tracking
discussions with the owner of the Crucero concession about his other concessions Guga 1 ( Copper ), Chrisol ( Gold ), Mariela ( IOCG ) and Crucero itself ( Copper and Gold ) above and beyond the
500,000 t mining JV already agreed.
I will be in Peru in January 2022 and our head Geologist, Spanish Speaking from Sydney, Jacob Rebek, will join me there mid-January. On the assumption that we have an agreement with Lino
Flores on his four concessions before Jacob arrives, then he can undertake initial walking and sampling on those concessions. Jacob and I have also discussed another area in Chile and one in
Peru of open ground that is prospective for Copper. CML can secure those tenements if an initial ground survey warrants closer inspection.
So despite the shock of the illegal actions of Elfer Bravo in relation to Achatayhua, I am confident we can still have a successful year in 2022 by adopting the following strategy:
- Mining Crucero tunnels and chambers to a maximum 350 t per day to generate cash flows
- Taking swift and strong legal action against Elfer Bravo to recover the Achatayhua project
- Doing initial low cost exploration in March 2022 on some open ground, on AMP 1. and on the four concessions of Lino Flores
- Keeping our costs and overheads to a minimum
The float of the company will be delayed until clarity emerges on the costs and likely outcomes of our mining, exploration and legal activities.