Advanced Explorations Inc. ADEXF

Due Dilegence?

[behrhunter]

I find it quite amazing that so many people who speak of doing due dilegence , consider DD to be radio interviews, hints, and news releases from the company.  No one has mentioned this:

As at March 31, 2010, the Company had cash and cash equivalents of $177,509

(December 31, 2009 - $870,234) and a working capital deficiency of $1.5 million (December 31,

2009 - working capital deficiency of $1.07 million). The Company does not have sufficient cash

reserves to fund its administrative costs for the coming twelve month period and to make inroads on

its liabilities to trade creditors and debt holders.

This came from AXI's interim financial statements ending March 31 (nearly 2 1/2 months ago). Available on SEDAR.  The company, despite news releases indicating $3.7 milllion, raised only $2.million.  To cover their working capital deficiency, the G&A since then, and , say, 3 months reserve....well, there is nothing left for any type of exploration.

When AXI first embarked on this project they espoused the benefits of a deep water port located very close to the ore body as the key to an economic advantage.  Unfortunatelly, the grade of ore was not good enough for this to work.  Plan B...nuggets (and now concentrates). This would add value and make the whole thing work. There were hints of strategic partners.  Unfortunately there were some other problems.  Investors got burned when the stock got pumped up to $3.00, and then tanked.  The stock market itself took a dive making fund raising difficult, and the contractual relationship with Roche Bay was revised, but not in a way that was beneficial to AXI.  Now we have Plan C.  Tuktu.  Hints of untold wealth.  Nudge nudge, wink, wink.

This company has no money to do anything. The only thing that will allow the stock to go up is that in the first three months of 2010 the company issued 600k of stock options at a weighted price of .17....which may explain why the resistance to let the stock fall right now.

There has been no work done of any consequence on the property for some time, and it does not look like much will happen this season.  In fact, there really has not been a great deal of progress made on the whole project to date.  And now we see a shifting of the focus once again.  Buy stock. Get the price up.
There is untold wealth and money to be made if you just believe.  It is time people really started to do some actual due dilegence.