RE: Crazy, You've Left Me Speechless! Jschool, your post has left me speachless as well, because there it is in black and white how currupt the whole game is.
How to get rich running a public exploration company:
1. Create public company and fulfill all requirements to trade on the Venture Exchange and gather a portfolio of exploration properties with "unlimited potential."
2. Appoint yourself president.
3. Grant yourself millions of incentive stock options at super low strike price.
4. Pay yourself a respectable salary.
5. Create private "consulting" company.
6. Pay private company consulting fees.
7. Grant private company millions of incentive stock options at super low strike price.
8. Do interviews and get the word out about your "story."
9. When stock price goes up, sell in-the-money stock options.
10. Finance the company by taking down private placement at a 20% lower strike price than what you just sold your options for. Pocket the difference.
11. Repeat steps 3 to 10 each year.
12. Create new public company to option properties from original company. (Hey, twice the salary, consulting fees and stock options for the same work! Good deal.)
13. Repeat steps 3 to 10 for new company.
14. Spin out half of original company's properties into new company in order to "create shareholder value." (Hey, three times the salary, consulting fees and stock options for the same work! Even better deal.)
14. Repeat steps 3 to 10 for new spin-out company.
So, by now you are receiving 3 salariesand consulting fees from 3 companies and collecting 6 yearly grants of incentive stock options from 3 different companies. You're rich, no matter how well or poorly you perform. Your sole purpose in all this activity, however, is to discover a viable deposit on one of your "unlimited potential" poperties so that shareholders can have a payday too. But that's the beauty of it, isn't it? You never actually have to deliver a mine. You just have to put out a yearly news release between financings that sums up the year's exploration activities. Here's an example: "the data from the verification program has shown gold mineralization is present in the Cruz Vein system and that a more extensive exploration program is merited." (from Intigold news release July 13,2011). Well as long as more extensive exploration programs are required, I guess you have a job to do. Go ahead, repeat steps 3 to 10. You know you deserve it.