Post by
raw_capital on Sep 04, 2009 2:49pm
What a crap investment
In the last quarter, they raised and spent $1,000,000 - mostly on paying themselves. There is no cash.
They are doing a financing that has been outstanding for months without news. Will it close?
Kent Couillard is the CEO. He does not appear to own any shares. Check www.sedi.ca
Kelly Fielder is a director, and does not own any shares. Check www.sedi.ca
Roy Shatzko is a director, and does not own any shares. Check www.sedi.ca
From what I can see, no directors own any shares.
First Quarter results: (THIS IS ONLY FOR 3 MONTHS... April to June 2009)
Investors gave them $1,000,000.
They spent $348,384 on travel.
They spent $127,050 on consulting - $70,100 of which was to a related party! (note 9 in financial statements of June 30)
They paid themselves a further $131,785 (note 7 in financial statements of June 30)
They advanced a director $81,087 (note 7 in financial statements of June 30)
They advanced someone else $55,917.
They sent only $26,799 to Brazil for exploration. (note 5 in financial statements). That is 2.68% of all the monies raised in the financing.
After all of this, on June 30, they have themselves $1,204 in the bank.
So lets recap. At the beginning of the quarter, April 1st, they have $1,102 in the bank. Then, they go and sell 33,333,333 at $0.03 each, and raise $1,000,000 of investors cash. Then, they spend only $26,799 on exploration, and at the end June, they report they only have $1,204. So, of that $1 million, there is only $102 left.
They said when they raised the $1 Million:
"The proceeds from the offering will be used for general corporateworking capital and to finance the company's obligations under theoption agreement with Metalex Ventures Ltd. dated effective April 15,2008. The option agreement is subject to the approval of the exchange,and further details of such agreement are disclosed in the company'smanagement's discussion and analysis dated Dec. 31, 2008, which isavailable on SEDAR."
I do not see any money going to Metalex Ventures Ltd. How are they going to pay that option agreement!??
This Company is not spending any meaningful amounts of money on exploration. Something is very wrong when $348,384 is spent on travel and investor relations (34.8% of financing) and $26,799 (2.68% on exploration).
What gives?
Comment by
wadeja on Sep 04, 2009 4:43pm
Excellent post. Well stated and God only knows. Welcome to the Venture Exchange I guess!
Comment by
jcja on Sep 08, 2009 4:39pm
complain to the securities commission
Comment by
frostythSNOman on Sep 16, 2009 1:08am
i guess management is accountable to no one, just lining their pockets with cash. i dumped iie long ago, just had a bad feeling, absolutely no communication. what is that faint sound in the distance? management laughing all the way to the bank. Seems like the venture exchange is just one big scam after another.