The Garland DealJody and Zim got 7,999,998 shares with a deemed fair value of $93,333 for claims that would have cost a few bucks to stake online. At today’s value of 7 cents their shareholding is worth $560,000.00.
Equitas will blow the money in the till at Garland because Zimtu and DG Resource Management get paid a whole whack of shares June 2016.
This type of deal puts the Equitas management team, the Project Generator team and the shareholders in a conflict of interest. Why negotiate for an Equitas royalty if something is found? Do a sweetheart deal and get the royalties flowing to DG Resource Management.
2% would be about the max that a mining company would tolerate on an operating mine.
Effectively what you have is a public company acting as an agent for the Project Generators. Shareholders get daily feedings of pablum and bunkum from Matty - not even a half-priced pint for the poor dumb dumbs that think this is the real deal.
This is the Garland News Release
“In consideration for a 100% stake in the Property, Equitas has entered into an option agreement with Zimtu Capital Corp., DG Resource Management Ltd. and Ridge Resources Ltd., collectively the “Vendors”.
The Company will issue 7,999,998 shares over a 36 month period of which 2,666,666 is due upon exchange approval of the agreement. Pay $80,000 over a 1 year period of which $30,000 is due upon signing and grant DG Resource Management a 2% Gross Overriding Royalty (GORR) in the Property. The transaction is subject to acceptance by the TSX Venture Exchange.”
This is from EQT Financial Statements
Garland Property, Labrador, Newfoundland
On July 10, 2014, the Company entered into an agreement with Zimtu Capital Corp. (a company with common directors and significant shareholdings), DG Resource Management Ltd., and Ridge Resources Ltd. (owned by the Company’s president), collectively the "Vendors", to acquire a 100% interest in the Garland Property, located in Labrador, Canada. The property encompasses 25,050 hectares and is 30 kilometres southeast of Vale's Voisey’s Bay Nickel/Copper/Cobalt mine. In consideration, the Company will issue 7,999,998 shares over a 36 month period of which 2,666,666 is due upon exchange approval of the agreement (issued with a fair value of $93,333), pay $80,000 over a 1 year period, of which $30,000 is due upon signing (accrued), and grant DG Resource Management a 2% Gross Overriding Royalty (GORR) in the Property. The transaction was accepted by the TSX-V on November 17, 2014