Wells Fargo Case Update, Other Business

Topic was closed automatically due to inactivity
bam-bam17 2013-09-11 12:30

September 11, 2013

RE: Wells Fargo Case Update, Other Business

To All CMKM Shareholders:

On August 8, 2013 lawyers for Wells Fargo Bank filed a Motion for Judgment, which is essentially a motion asking for our case to be dismissed (see link to WF Mtn. for Judgment). This motion came suddenly after Wells Fargo lawyers got a Rule 16 case conference delayed two months in a row (July and August). Rule 16 conferences are designed to expedite and streamline scheduling, discovery, and cooperation between opposing parties in hopes of leading to a pre-trial settlement.

CMKM lawyers filed a response to the Wells Fargo MFJ on September 3, 2013 (see link to WFcmkm opp brief to MFJ) and a hearing was set for the judge to rule on this motion for September 12, 2013. However, Wells Fargo’s lawyers have gotten an extension until sometime in October so they can file a response to our response.

I am certainly hopeful/optimistic that the WF motion will be denied, but we must wait on the judge to make a final determination. As we can see – WF is using every legal tactic available to delay, avoid, and destroy our case against them. The facts in the case are very clear, but these tactics are typical in a case of this type. This case was originally scheduled for trial long ago, but the death of the lead attorney for WF allowed an initial long delay. When I was appointed for this job 22 months ago I fully expected to have the WF case settled within my first year due to advice from our attorneys. I fully expected that by now we would be “in business” in a serious way.

It is very clear that CMKM/NHHI can no longer wait for extended/delayed/uncertain civil litigation recoveries to fund our development of a viable business operation. We have been waiting for significant recoveries that would allow CMKM/NHHI to enter into operations totally debt-free, which is the optimum way to begin a business venture. However, waiting is no longer palatable for any of us.

Management has begun what will become an exhaustive effort to secure funding for our first oil/gas venture. Many promising oil/gas prospects have been located and studied, but one prospect in particular fits our specific criteria almost perfectly. I need to raise $15M for acquisition and $3M to $5M for operating capital and additional drilling. This acquisition would produce immediate cash flow of over $250k/month net, with the opportunity to drill an additional 20+ low-risk wells to increase cash flow significantly. The total proven reserve value of this prospect is $90M+, with probable and possible reserves that increase the potential to $140M+. This initial purchase would provide the cash flow, experience, and track record needed to make CMKM/NHHI a serious contender in the junior sector of the oil/gas business.

There are many ways to raise funds for this acquisition, and I am exploring any and all of them now. It will be difficult to secure traditional bank financing for this type of project, but the safety and proven history of this prospect make alternative funding very possible. This search for funding will take most of my time in the weeks ahead. If you as an individual shareholder have connections to funding sources or investors please have them contact me at stevek@cmkmdiamondsinc.com. Thank you and God bless!

Steve Kirkpatrick



Comments are closed