Commentary - 01/04/2009

An Agent of Rothschilds?

With the recent announcements of NovaGold's deal, this article NovaGold strikes $60 mln financing deal
Upon closing, New York-based Electrum will become NovaGold's biggest shareholder with 30 percent of its stock. It will control a 46 percent share if all warrants are exercised.
and this article Beleaguered NovaGold finds a major investor, introduce a company named Electrum.
On Friday, the company finally offered investors some good news: a major strategic investment. A New York-based company called Electrum Strategic Resources LLC has agreed to buy about 30% of NovaGold in a US$60-million private placement. The deal will help NovaGold pay off a key bridge loan and advance its projects."

Electrum chief executive William Natbony noted in a statement that NovaGold is . . .

I found it interesting that in December of 2008, in Gabriel holder Electrum acquires 479,200 shares that Electrum is a subsidiary of GRAT Holdings LLC.
On Dec. 19, 2008, Electrum Strategic Holdings LLC, a wholly owned subsidiary of GRAT Holdings LLC, acquired ownership and control of 479,200 common shares of Gabriel Resources Ltd., representing approximately an additional 0.19 per cent of the issued and outstanding shares of Gabriel. After such acquisition, Electrum has ownership and control of 50,819,500 common shares, which represent approximately 19.89 per cent of the issued and outstanding common shares of Gabriel.
GRAT is a Grantor Retained Annuity Trust, and it has caused some controversy. As explained here (search for GRAT in page):
Rule 16a-13. The SEC and the courts are in conflict as to whether transactions involving a “GRAT” (i.e., a grantor retained annuity trust) involve a change in the form of ownership. The SEC staff has said that a transfer to a GRAT by an insider-grantor constitutes a nonreportable change in the form of ownership where the insider serves as a trustee of the GRAT. See Peter J. Kight (October 16, 1997).
Interestingly enough, if you search New York Corporations' database there is NO entry for Electrum Strategic Holdings LLC nor GRAT Holdings LLC,
at least not as of today. Perhaps the ink has not dried on these new entities' paperwork.

If you google for William Natbony, you'll find he is a partner in the Katten Muchin Rosenman LLP law firm here. Before that:

"Mr. Natbony was the President and Chief Operating Officer of Croesus Capital Management, an emerging markets money management firm with offices in New York, Washington, D.C., Moscow and Budapest . . ."
The Katten Muchin Rosenman law firm:
Founded in 1974, Katten Muchin Rosenman LLP is a full-service law firm with more than 650 attorneys in locations across the United States and an affiliate in London.
If you google for Crosesus Capital Management, you find this here:
Croesus Capital Management is part of the Rothschild Emerging Market funds.
I'm thinking Electrum Strategic Holdings LLC is a front for Rothschilds, who abandoned fixing the price of gold to hiding behind fronts to buy up large percentages of mining properties, if not eventually acquiring TITLE at some point.

Perhaps only then will the price of gold explode.

Sometimes The Dragon Wins, but it's everyone else that suffers.

© 2009 by Edward Ulysses Cate
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