The VGMC
Transformation
12/01/2012
The late
Steve Jobs once said, “The heaviness of being successful was replaced by the
lightness of being a beginner again, less sure about everything. It freed me to
enter one of the most creative periods of my life.”
Dear Shareholders,
I am pleased to announce that we have achieved the successful conversion of CPS-GOLD into a professional structure that will enable it to be listed within the next 12-15 months. Congratulations to everyone involved and especially our persevering, supportive and matured shareholders.
Within the VGMC group, shareholders have continued to subscribe to CPS-PLATINUM since its initial offering in October of this year. The response has been overwhelming and a welcome expression of our investor’s continuing confidence in our portfolio. It feels like another beginning. Without doubt CPS-GOLD is one of the best investments offered to date and CPS-PLATINUM is set to surpass this performance.
Andrew Grove, CEO of Intel Corporation who helped transform his company into the world's largest manufacturer of semiconductors, once said, “A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is TRANSFORMATION.”
Our board of directors and executive team believe that VGMC is in the process of such TRANSFORMATION. The very important engine of this transformation is none other than our shareholders who constantly expect and inspire us to continue to renovate, reinvent, refocus and revisit new organisational goals. Your comments, criticisms, intelligent feedback and analysis inspire this organisation to transform into a transparent and financially viable corporation going forward.
Virgin Gold will continue to offer CPS-PLATINUM and we are already looking into the possibility of offering CPS-SILVER, as early as 1st half of 2013.
The biggest challenge we face is due to external factors in relation to cross border money transfers. When I became CEO of VGMC, I put this as one of my top priorities and there is still a lot more progress to be made on that front. Recurring issues with Incoming Wire Transfers and Outgoing Payments have not always been able to be resolved successfully, which affected up to some 5% of our shareholders. This issue is not unique to our company; it is a common difficulty for all global organisations handling cross border money transactions from multiple sources. International financial regulatory frameworks have become far more stringent as countries across the globe continue to struggle with tackling their well-documented sovereign debt problems and ineffective financial policies. It is important to us to avoid the negative experience to some of our shareholders and consider that it is vital for us to protect ourselves as best we can from the adverse effect of external circumstances.
We believe the best way to overcome this issue is to grow into a self-sufficient financial institution. We appreciate VGMC’s core strength is not in finance but in natural resource management and investments as we have proven so far. However, taking inspiration from Andrew Grove, we know going forward VGMC has to transform from a natural resource investment company into a financial institution.
"In the middle of difficulty," observed Albert Einstein "lies opportunity." VGMC has the most important element to be a successful financial institution offering a wide range of financial services. Harnessing the opportunity and potential of our goals will present challenges along the way. We are going through a complex process and our executive board is tasked with steering us safely through a robust and sustainable corporate restructuring that will ensure this is a worthwhile journey for all of us.
Our commitment at all times is to our shareholders and we understand fully the responsibility of maintaining your on-going support. Every decision and plan we are currently implementing has been carefully considered to ensure the benefit to our shareholders in the long term. Our Executive Board will keep shareholders informed of progress and milestones achieved at all times throughout the coming months.
On behalf of the Board of Directors and Executive Board, I would like to thank every shareholder for their backing of subscribing to CPS-PLATINUM and continued support for the sustainable future of our company.
Kenneth Elinger
CEO
Virgin Gold Mining Corporation
Dear Shareholders,
I am pleased to announce that we have achieved the successful conversion of CPS-GOLD into a professional structure that will enable it to be listed within the next 12-15 months. Congratulations to everyone involved and especially our persevering, supportive and matured shareholders.
Within the VGMC group, shareholders have continued to subscribe to CPS-PLATINUM since its initial offering in October of this year. The response has been overwhelming and a welcome expression of our investor’s continuing confidence in our portfolio. It feels like another beginning. Without doubt CPS-GOLD is one of the best investments offered to date and CPS-PLATINUM is set to surpass this performance.
Andrew Grove, CEO of Intel Corporation who helped transform his company into the world's largest manufacturer of semiconductors, once said, “A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is TRANSFORMATION.”
Our board of directors and executive team believe that VGMC is in the process of such TRANSFORMATION. The very important engine of this transformation is none other than our shareholders who constantly expect and inspire us to continue to renovate, reinvent, refocus and revisit new organisational goals. Your comments, criticisms, intelligent feedback and analysis inspire this organisation to transform into a transparent and financially viable corporation going forward.
Virgin Gold will continue to offer CPS-PLATINUM and we are already looking into the possibility of offering CPS-SILVER, as early as 1st half of 2013.
The biggest challenge we face is due to external factors in relation to cross border money transfers. When I became CEO of VGMC, I put this as one of my top priorities and there is still a lot more progress to be made on that front. Recurring issues with Incoming Wire Transfers and Outgoing Payments have not always been able to be resolved successfully, which affected up to some 5% of our shareholders. This issue is not unique to our company; it is a common difficulty for all global organisations handling cross border money transactions from multiple sources. International financial regulatory frameworks have become far more stringent as countries across the globe continue to struggle with tackling their well-documented sovereign debt problems and ineffective financial policies. It is important to us to avoid the negative experience to some of our shareholders and consider that it is vital for us to protect ourselves as best we can from the adverse effect of external circumstances.
We believe the best way to overcome this issue is to grow into a self-sufficient financial institution. We appreciate VGMC’s core strength is not in finance but in natural resource management and investments as we have proven so far. However, taking inspiration from Andrew Grove, we know going forward VGMC has to transform from a natural resource investment company into a financial institution.
"In the middle of difficulty," observed Albert Einstein "lies opportunity." VGMC has the most important element to be a successful financial institution offering a wide range of financial services. Harnessing the opportunity and potential of our goals will present challenges along the way. We are going through a complex process and our executive board is tasked with steering us safely through a robust and sustainable corporate restructuring that will ensure this is a worthwhile journey for all of us.
Our commitment at all times is to our shareholders and we understand fully the responsibility of maintaining your on-going support. Every decision and plan we are currently implementing has been carefully considered to ensure the benefit to our shareholders in the long term. Our Executive Board will keep shareholders informed of progress and milestones achieved at all times throughout the coming months.
On behalf of the Board of Directors and Executive Board, I would like to thank every shareholder for their backing of subscribing to CPS-PLATINUM and continued support for the sustainable future of our company.
Kenneth Elinger
CEO
Virgin Gold Mining Corporation
End of Year Review
2012
12/31/2012
Dear
Shareholders, Employees and Partners,
The year 2012 has been significant in the history of our organisation. Our professional investment team now manages our onshore investment via a dedicated listed entity in Europe. CPS-PLATINUM was launched and taken up by over 50% of our existing shareholders. The global shareholder base now exceeds 150,000 in over one hundred countries.
CPS-GOLD has successfully been restructured into a closed-end fund that is to be listed in 2013. This means we are accurately on target with the continuous implementation of our growth strategy as was set out to our shareholders when we started offering CPS-GOLD on 1st January 2010.
The response from our shareholder base has been overwhelming with literally tens of thousands of emails congratulating us on the recent major achievements well ahead of schedule. I am pleased to announce that shareholders will be able to exercise their OPTIONs to fully convert their preferred shares into Common Shares from January 2013. Our advice continues that we are urging shareholders not to miss this window of opportunity during which to exercise their OPTIONs as soon as possible. Net Asset Value (NAV) per share is set to grow month on month based on our investment strategy of dividend reinvestment and capital raised from the OPTIONs exercise. CPS-GOLD is to be listed in 2013, a commitment I can now make with absolute certainty.
CPS-GOLD offers our shareholders the exceptional opportunity of acquiring shares in a listed vehicle at a preferential low price and realise fast and maximum return on their investment in line with month on month per share NAV.
What motivates us to offer this opportunity to our CPS-GOLD shareholders?
1. Corporate Strategy – A corporation is meaningless without the foundation of a strong board of directors, executive board and shareholders. As we have grown, we have been able to attract the best talent onto our Directors and Executive Boards. There is strength in numbers to create the critical mass necessary to give us real investment ‘muscle’ and this is where the constant support of our CPS-GOLD holders has been invaluable in taking this organisation to the level it is at today. So, going forward, we are confident that our shareholders will continue to want to be part of our unique and exceptional team.
2. Corporate Statue – By virtue of its closed-end structure, there is a binding contract between the company and each CPS-GOLD holder that prior to a public listing exercise, the company must provide respective OPTIONs to its Convertible Preferred Shareholders. This is the exercise we are currently under-going, thus giving CPS-GOLD holders the OPTIONs to convert their preferred shares to common shares that can subsequently be listed and freely traded in the open stock market.
There has been considerable external demand to buy into CPS-GOLD but this privilege is currently exclusive to our current shareholders under their preferred OPTIONs only. On completion of the listing, any OPTIONs not exercised by our shareholders may be allocated to non-shareholders, institutional investors and investment banks. In reality, this corporation will ultimately raise more funds by selling its shares to the public prior to listing.
I also want to take this opportunity to address some of the issues raised by a small number of unsatisfied shareholders. The re-structuring has not been without its challenges and in the spirit of transparency I am sharing with you that some shareholders took their complaint, believing that Virgin Gold had not acted properly, to the local regulator. Others tried to take action against their referrer or local payment agent. These are very disappointing incidents to us that we take very seriously and always aim to resolve positively. The regulatory system is there to protect investors, which is why we take great care to observe compliance in the countries we operate and deal with any complaints in a professional and subjective manner.
Firstly, responding to some of the doubts expressed about delivering the results we promised, our company committed to pay a monthly dividend and has not failed to do so for more than two and a half years. Even at this stage CPS-GOLD shareholders’ dividends continue to be paid by way of dividend-reinvested back to the company. Dividend-reinvested is critical for the company in the months prior to listing, enabling us to grow exponentially and increase scales of economy to achieve the highest possible listing price. The underlying value of the corporation will be reflected in its share price and the ultimate beneficiaries are our shareholders.
Secondly, shareholders pay 50% of the difference in price between the latest CPS-GOLD (USD1.70) price and current Net Asset Value (NAV) price. This is part of the contract agreed between all shareholders and the company when originally subscribing to CPS-GOLD.
Thirdly, shareholders exercise their OPTIONs voluntarily and are under no obligation to do so. Those who elect not to exercise their OPTIONS may be eligible for Voluntary Asset Distribution of non-listed assets on listing. We are not currently able to quantify this value or provide further information on this issue at this point in time. Our primary objective is to deliver the OPTIONs created for our preferred shareholders to pay 50% of a product they can in future sell at 100% value in the open market. Shareholders exercising their OPTIONs early will effectively benefit from a return of several hundred percent.
Finally, throughout the corporate restructuring exercise in the last quarter of 2012, Virgin Gold has been transparent and kept its shareholders fully informed of the various steps taken in the progress of our business. It is the interest of the majority shareholders that has and will always be at the centre of our strategy and decision-making.
We learn from past experience to improve in the future. Our corporate objectives have been achieved to the satisfaction of the majority of our shareholders from more than 100 countries. It is always important to manage investors’ expectations and communicate with clarity to ensure the terms and conditions of the CPS-GOLD subscription are clearly understood and interpreted. Unfortunately it is not possible to change the original terms that apply to all for the sake of individual disgruntled shareholders. As a company we are obliged to apply proper corporate governance to protect the future of our business and attain maximum benefit for our majority shareholders.
We have made great strides for our business this year and with the lessons learnt we are now better equipped for the opportunities and challenges we currently face and in the future. Consequently we are now reviewing the terms and conditions of our CPS-PLATINUM offering with our legal team to ensure CPS-PLATINUM holders will not pay a price difference to convert preferred shares into common shares during a future public listing exercise.
Concluding 2012 on a positive note with the successful, it has been the greatest pleasure of this management to serve you. Representing the Board of Directors and Executive Board I would like to pay our special tribute to every single one of our considerate shareholders, employees and partners for your continuous support.
Thank you!
Kenneth Elinger
CEO – Virgin Gold Mining Corporation
The year 2012 has been significant in the history of our organisation. Our professional investment team now manages our onshore investment via a dedicated listed entity in Europe. CPS-PLATINUM was launched and taken up by over 50% of our existing shareholders. The global shareholder base now exceeds 150,000 in over one hundred countries.
CPS-GOLD has successfully been restructured into a closed-end fund that is to be listed in 2013. This means we are accurately on target with the continuous implementation of our growth strategy as was set out to our shareholders when we started offering CPS-GOLD on 1st January 2010.
The response from our shareholder base has been overwhelming with literally tens of thousands of emails congratulating us on the recent major achievements well ahead of schedule. I am pleased to announce that shareholders will be able to exercise their OPTIONs to fully convert their preferred shares into Common Shares from January 2013. Our advice continues that we are urging shareholders not to miss this window of opportunity during which to exercise their OPTIONs as soon as possible. Net Asset Value (NAV) per share is set to grow month on month based on our investment strategy of dividend reinvestment and capital raised from the OPTIONs exercise. CPS-GOLD is to be listed in 2013, a commitment I can now make with absolute certainty.
CPS-GOLD offers our shareholders the exceptional opportunity of acquiring shares in a listed vehicle at a preferential low price and realise fast and maximum return on their investment in line with month on month per share NAV.
What motivates us to offer this opportunity to our CPS-GOLD shareholders?
1. Corporate Strategy – A corporation is meaningless without the foundation of a strong board of directors, executive board and shareholders. As we have grown, we have been able to attract the best talent onto our Directors and Executive Boards. There is strength in numbers to create the critical mass necessary to give us real investment ‘muscle’ and this is where the constant support of our CPS-GOLD holders has been invaluable in taking this organisation to the level it is at today. So, going forward, we are confident that our shareholders will continue to want to be part of our unique and exceptional team.
2. Corporate Statue – By virtue of its closed-end structure, there is a binding contract between the company and each CPS-GOLD holder that prior to a public listing exercise, the company must provide respective OPTIONs to its Convertible Preferred Shareholders. This is the exercise we are currently under-going, thus giving CPS-GOLD holders the OPTIONs to convert their preferred shares to common shares that can subsequently be listed and freely traded in the open stock market.
There has been considerable external demand to buy into CPS-GOLD but this privilege is currently exclusive to our current shareholders under their preferred OPTIONs only. On completion of the listing, any OPTIONs not exercised by our shareholders may be allocated to non-shareholders, institutional investors and investment banks. In reality, this corporation will ultimately raise more funds by selling its shares to the public prior to listing.
I also want to take this opportunity to address some of the issues raised by a small number of unsatisfied shareholders. The re-structuring has not been without its challenges and in the spirit of transparency I am sharing with you that some shareholders took their complaint, believing that Virgin Gold had not acted properly, to the local regulator. Others tried to take action against their referrer or local payment agent. These are very disappointing incidents to us that we take very seriously and always aim to resolve positively. The regulatory system is there to protect investors, which is why we take great care to observe compliance in the countries we operate and deal with any complaints in a professional and subjective manner.
Firstly, responding to some of the doubts expressed about delivering the results we promised, our company committed to pay a monthly dividend and has not failed to do so for more than two and a half years. Even at this stage CPS-GOLD shareholders’ dividends continue to be paid by way of dividend-reinvested back to the company. Dividend-reinvested is critical for the company in the months prior to listing, enabling us to grow exponentially and increase scales of economy to achieve the highest possible listing price. The underlying value of the corporation will be reflected in its share price and the ultimate beneficiaries are our shareholders.
Secondly, shareholders pay 50% of the difference in price between the latest CPS-GOLD (USD1.70) price and current Net Asset Value (NAV) price. This is part of the contract agreed between all shareholders and the company when originally subscribing to CPS-GOLD.
Thirdly, shareholders exercise their OPTIONs voluntarily and are under no obligation to do so. Those who elect not to exercise their OPTIONS may be eligible for Voluntary Asset Distribution of non-listed assets on listing. We are not currently able to quantify this value or provide further information on this issue at this point in time. Our primary objective is to deliver the OPTIONs created for our preferred shareholders to pay 50% of a product they can in future sell at 100% value in the open market. Shareholders exercising their OPTIONs early will effectively benefit from a return of several hundred percent.
Finally, throughout the corporate restructuring exercise in the last quarter of 2012, Virgin Gold has been transparent and kept its shareholders fully informed of the various steps taken in the progress of our business. It is the interest of the majority shareholders that has and will always be at the centre of our strategy and decision-making.
We learn from past experience to improve in the future. Our corporate objectives have been achieved to the satisfaction of the majority of our shareholders from more than 100 countries. It is always important to manage investors’ expectations and communicate with clarity to ensure the terms and conditions of the CPS-GOLD subscription are clearly understood and interpreted. Unfortunately it is not possible to change the original terms that apply to all for the sake of individual disgruntled shareholders. As a company we are obliged to apply proper corporate governance to protect the future of our business and attain maximum benefit for our majority shareholders.
We have made great strides for our business this year and with the lessons learnt we are now better equipped for the opportunities and challenges we currently face and in the future. Consequently we are now reviewing the terms and conditions of our CPS-PLATINUM offering with our legal team to ensure CPS-PLATINUM holders will not pay a price difference to convert preferred shares into common shares during a future public listing exercise.
Concluding 2012 on a positive note with the successful, it has been the greatest pleasure of this management to serve you. Representing the Board of Directors and Executive Board I would like to pay our special tribute to every single one of our considerate shareholders, employees and partners for your continuous support.
Thank you!
Kenneth Elinger
CEO – Virgin Gold Mining Corporation
Pre-view
2013
01/01/2013
Dear
Shareholders, Employees and Partners:
The year 2013 is set to supersede 2012 as the best year for Virgin Gold. I am pleased to present to you our plans going forward this coming year and I am very sure that by working together and understanding each other we will achieve and hopefully exceed the goals we set out to meet.
1. Virgin Gold will continue to offer CPS-PLATINUM throughout 2013 and 2014. Speculation that CPS-PLATINUM will be restructured into a fund similar to CPS-GOLD in 2013, following the launch of CPS-SILVER, is without basis and will categorically not happen.
2. CPS-SILVER will be offered in the 1st half of 2013 and will not in any way effect CPS-PLATINUM.
3. CPS-PLATINUM and CPS-SILVER will not be converted to the same terms and conditions of CPS-GOLD. CPS-PLATINUM and CPS-SILVER will be listed without shareholders required to exercise OPTIONs and paying a price difference to upgrade Convertible shares to Common shares. A listing exercise for CPS-PLATINUM and CPS-SILVER will trigger an automatic conversion to common shares that is then fully eligible to be listed. Our external legal consultants are currently drafting new CPS-PLATINUM and CPS-SILVER subscription terms and conditions which we expect to finalize in February 2013 when current shareholders will be officially informed.
4. The company has made detailed plans now in progress to apply for a financial license in preparation for Virgin Gold or its subsidiary to be able to offer new financial products later in 2013. As explained in my previous communication to shareholders, this is also part of our effort to overcome recurring issues with international money transfers.
I will continue to provide regular updates throughout as and when new developments arise. My personal objective this year, based on the feed-back from our shareholder base, is to make sure that our company’s goal and direction are clearly understood. Managing all our expectations, both at corporate and shareholder level, will ensure continued commitment from all of us. Those who considered our company to be just about ‘Gold’ could not have been further from the truth as we continue to build the full depth and breadth of our business. The journey of Virgin Gold has only just begun.
Sit tight. Fasten your seat belt and enjoy the journey!
Regards
Kenneth Elinger
CEO – Virgin Gold Mining Corporation
The year 2013 is set to supersede 2012 as the best year for Virgin Gold. I am pleased to present to you our plans going forward this coming year and I am very sure that by working together and understanding each other we will achieve and hopefully exceed the goals we set out to meet.
1. Virgin Gold will continue to offer CPS-PLATINUM throughout 2013 and 2014. Speculation that CPS-PLATINUM will be restructured into a fund similar to CPS-GOLD in 2013, following the launch of CPS-SILVER, is without basis and will categorically not happen.
2. CPS-SILVER will be offered in the 1st half of 2013 and will not in any way effect CPS-PLATINUM.
3. CPS-PLATINUM and CPS-SILVER will not be converted to the same terms and conditions of CPS-GOLD. CPS-PLATINUM and CPS-SILVER will be listed without shareholders required to exercise OPTIONs and paying a price difference to upgrade Convertible shares to Common shares. A listing exercise for CPS-PLATINUM and CPS-SILVER will trigger an automatic conversion to common shares that is then fully eligible to be listed. Our external legal consultants are currently drafting new CPS-PLATINUM and CPS-SILVER subscription terms and conditions which we expect to finalize in February 2013 when current shareholders will be officially informed.
4. The company has made detailed plans now in progress to apply for a financial license in preparation for Virgin Gold or its subsidiary to be able to offer new financial products later in 2013. As explained in my previous communication to shareholders, this is also part of our effort to overcome recurring issues with international money transfers.
I will continue to provide regular updates throughout as and when new developments arise. My personal objective this year, based on the feed-back from our shareholder base, is to make sure that our company’s goal and direction are clearly understood. Managing all our expectations, both at corporate and shareholder level, will ensure continued commitment from all of us. Those who considered our company to be just about ‘Gold’ could not have been further from the truth as we continue to build the full depth and breadth of our business. The journey of Virgin Gold has only just begun.
Sit tight. Fasten your seat belt and enjoy the journey!
Regards
Kenneth Elinger
CEO – Virgin Gold Mining Corporation
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