The silver price up overnight

Positive infill drilling results on its Maronan silver deposit..

Yet the share price of Maronan Metals is still flat today! 

You can see why the following email has been sent to all Maronan Metals shareholders 

 
Dear Maronan Shareholder

Please inform me if you do not wish to receive these communications.
The intention has always been to create a well organised campaign for Maronan Metals shareholders but the first correspondence you received from me earlier this year was made in haste and lacked some professionalism. We will now rectify this.

Many of you received that first email and some of you have received two letters if you own Red Metal shares. It is important to let me know if you do not wish to be contacted again and if you have already done that and I am now making the mistake of contacting you again, please know its not intentional and as our organisation gets better, these lists will be better maintained.

If you have not read the report into trading of Maronan Metals it is attached to this email. Also in July there was a change of ownership filing from Crescat Capital, our cornerstone investor. While Richard Carlton proudly announces great unity between Maronan and Crescat "in this journey together', Crescat may be assisting short selling, either now or in the future, with its affiliate company, the Crescat Long Short Master Fund LTD. It is not the sort of entity that is likely to be a friend of genuine shareholders who hope for higher prices, not lower prices.

By previously lodging a takeover panel application, I tried to prevent the recent placement from being awarded to Veritas however the application was rejected. The relentless share price pressure provided by one particular broker in the Maronan trading report gives reason for concern. The report should have alerted MMA directors to thoroughly vet likely placement recipients to ensure that they were a good fit for the Company and its existing holders.  

Veritas was allowed to proceed with the placement and from the copy of the annual report I can see who took up shares. UBS Nominees has secured 6.78 million shares and as it happens, they have often been associated with companies that have been merged or taken over after long periods of share price underperformance.  And Zero Nominees, another company with a track record not unlike UBS Nominees, has secured 8.33 million placement shares.

Whilst it is a good promotion to the big leagues to now have several institutions on the register, and while we are gaining confidence that we are now progressing towards mining, history shows that this does not necessarily translate into an increased share price. 

Having these two institutions on the register tell us two things

1.      Maronan is a promising company that the big end of town are happy to have some exposure to, and

2.      A corporate play e.g., a takeover or a merger could be on the cards down the track, if the company is successful in developing its precious metals project.

In the event of a corporate move on the Company, Red Metal with its 43.98% substantial holding in Maranon Metals would play a pivotal role. The biggest concern for shareholders would be if they were prepared to accept a cheap offer, based on a share price that might be held back for a period of time. After all, there have been many precedents whereby undervaluations imposed on companies have led to corporate moves for a fraction of their true worth.

This memo is not to scare you out of your investment. On the contrary we need your support if we are going maximise value for shareholders going forward. There has been a lot of quiet support for our movement from Red Metal shareholders too, so now we need your support as well.

Let me know if you are interested in keeping updated of any developments as we seek to work with the Maranon Board to ensure that the best interests of all shareholders are taken into account at all times.

Another thing about silver, 

The gold/silver ratio is now 85/1
Traditionally this ratio has been much lower, often being around 8/1 but on average being between 15-25/1

The ratio has ballooned higher at a time when industrial use for silver has skyrocketed. At this same sime, sentiment for silver compared with gold plummeted with most Asian people regarding silver as far inferior to gold. Now, documents and newspaper articles are emerging with much factual evidence that this began when silver began being used in large quantities in modern era sophisticated weapons. Think of how much more silver is used in an electric car to a traditional one and the same thing applies to missiles and other high tech weapons. Many people now think that the price and sentiment of silver has been kept low to allow for mass production of these weapons. 

The saying goes "we are sitting on a gold mine here". Maronan and Red Metal Directors know that our Maronan deposit is valuable based on current silver prices and projections by the silver institute but the question is, "Do they really know the potential upside of what we are sitting on and how best to achieve it?". Certainly there are entities out there with a predatory mindset who share our view, and unfortunately they have the ability to manipulate the share price. Our goal is to prevent them from gaining control cheaply. 

Lets grow the Maronan shareholder group and support the growth of the company. I look forward to working with you in the hope that together we can better achieve our shared aims. 

Sincerely 
Ben Pauley