Dear fellow Shareholders of Chala Metals Limited (CML) Regrettably our company remains in a stricken state and, as many of you are aware, the investment climate for mining exploration is in a parlous state.
Nevertheless, the Board continues to work hard to try to resurrect the company’s fortunes. We have been offered majority participation in a Copper project South West of Achatayhua with 127 samples averaging 1.2% Cu and in a Chilean IOCG project with high Iron, Copper and Gold results.
However, CML is unable to meaningfully negotiate a position in these projects due to severe lack of funds. We also continue to discuss with the group holding neighboring tenements the idea of listing the project in Canada, which would involve a share swap between CML shares and shares in the new Canadian listed entity. Again the terrible state of exploration investment sentiment makes this option unlikely.
The ray of light we can offer, relates to a trading opportunity. Chala has been offered the opportunity to act as an agent for a recently formed Swiss trading company to purchase Copper Concentrates from Peruvian suppliers.
We have already procured 100 tonnes per month and hope to rapidly increase this to at least 500 tonnes per month. I personally will increase my loan to CML by a few thousand more to enable our Geologist Rene Calle to visit plants in Nazca and Chala to collect samples for possible sale to the Swiss company. This activity will not generate huge sums of money but it should cover most holding costs and small salaries for our key management Paulo Diamantino, Rene Calle and myself. I will keep everyone updated as we progress.
Yours faithfully,
Mark Newton
Executive Chairman
Chala Metals Limited