My take, FWIWAs has already been said, the 8k wasn't what we were expecting but it does confirm funding was in place. OpiNioNated had a nice post in a face to face conversation, thanks.
Here's my pure speculation based on numberous inputs, rumors etc. and molded down into a plausible story. The Chinese came to the property in May and liked what they saw. TIGMR said we will put $6 million into the company and they should see the first of the funds by June 10th. Douglas taking them on their word issues a press release and all is grand. June 10th came by and went with no funds. TIGMR then strings the company along with no funds forthcoming. The closing date was quickly approaching and no funds came. Douglas then decides to just get the deal done without them and gets a private group of investors to caugh up $1 million to get the property closed. The CEO goes off to Tanzania to get new directors, identify a local alluvial deposit company and to get Dr. Groves on the property to do a preliminary assessment. Upon returning, the Moriarty article hits with huge support for the property and equally opposite support for the CEO. The company responds with what they have accomplished with the 8k closing, new directors and alluvial deposit company to oversee the project. Then the materials for the 10Q had to be created for the auditors and the June funding that was raised to close the deal. Finally the Chinese get off their dime and commit to fund the company to pay for Mbwemkuru operations (per OpiNioNated) going forward
Okay, here is the IF that has to now be resolved not by he said/she said between Douglas or Moriarty but in writing out for the entire public to see: What is the status of the Chinese and their committed funding of the project? That ultimately is the crux of the issue and apparently for Moriarty no Chinese involvement clearly shows the CEO lying to us all along, it also means that more equity will have to be issued to someone else to fund exploration etc. etc. A positive resolution to the Chinese issue, probably means uptown for the stock and a huge shot in the arm for the CEO's credibility. I for one am going to continue to hold my equity position because lets face it, Mbwemkuru outside of the drama is looking like one heck of a gold deposit. We share holders can wait a little longer to decide if the Chinese are for real and if the CEO needs to be replaced.
To answere dcrain's question, yes warrants can be used to short the stock since they offer an automatic fixed price cover. Not all warrants are used in this manner as the buyers may be more long the stock and will earn more money not shorting. We will know by the short interest that if about 3 million new shorts have been put on, then we have an active presence resisting the stock's movement.