RE:Withholding of Material Information In regard to withholding material information…
In May 2023, The company sold 6.6 million Canadian Exploration Expense common shares, and 18.6 million Canadian Development Expense common shares for proceeds of approximately C$17.5 million. These type of shares offer the company a tax incentive.
The company also stated, ‘The proceeds of the offering will be used to incur Qualifying Expenditures at the Company’s Magino project’.
I have an email from IR stating the Canadian Flow Through Equity Raise was to fund a portion of the planned reserve development and exploration program at Magino. She also said C$5 million would be used to test deeper underground high-grade target similar to AGI.
The company stated in their Q3’23 MD&A, ‘The 63,000-metre reserve development drill program began on schedule on August 1 and is expected to be completed by mid-2024.’
The drill program commenced 9 months ago on time and is expected to be complete by mid-2024.
In December 2023, during the interview Richard Young had with Antonio which is posted on YouTube, Richard stated, ‘this year to begin a program to convert resources to reserves within that pit so some of the funds that we’re raising this week will continue with that program.’
The funds he discussed that were going to be allocated to the resources to reserves program, were from the C$85 million equity raise which happened in December 2023. Insiders purchased the entire equity raise, while the fat short position posted on the OTC miraculously covered during the same period.
How is it possible, considering we’re 2 months away from mid-2024, that the company doesn’t have any material information pertaining to the drill program to convert resources to reserves?
There is evidence that the company has allocated a substantial amount of funds to the drill program at Magino. The company stated 9 months ago that the program would be complete by mid-2024 (June 2024). They said we would see results in March 2024. However, in March, the company didn’t release any results instead they said the results would be announced in June 2024. Now, they are telling investors there is no material information to present.
Like I said, the company blew through millions of dollars, diluted shareholders significantly, sent the stock price falling to an all-time low while Gold traded at an all-time high. After 9 months of drilling, the company says they have no material information to present.
In regard to this incompetence, the company further diluted shareholders by issuing themselves millions of RSUs subsequent to the stock price bouncing off an all-time low.
Where did all the money go from the Flow-Through Shares? Where did the money from the C$85 million equity raise which the CEO said some of the funds would be allocated to the resources to reserves conversion drill program go? What were they doing for the past 9 months while they told investors they were conducting drilling operations? Did the company collect the tax incentive from the Flow-Through Shares?
This drill program sounds like a scandal.