1) Insider has control of a publicly traded company.

2) Same insider has control of claims - usually surround staking another play.

3) Insider vends claims to publicly traded company for 10 million shares.

4) Insider retains royalty interests in claims.

5) Insider hires schmuck with new toupee to run company. 

The main thing for schmuck to do is stay pleasantly surprised about the companies’ great prospects and convince people selling would be disloyal to the brand.  

6) Hire IR to find enough people with low self-esteem to buy-in.

7) Public company raises money and does work

8) If a discovery is made the papered up Insider is sitting on both sides of the table and can now sell his royalty interest or collect on it. 

9) If no discovery is made Insider promotes the play up the flagpole and makes money on the hype surrounding the drilling, till sampling, petrographic analysis, you name it...

10) Insider dumps stock on the way up and shorts on the way down. 

The above may be a conflict of interest but if Insider plays his cards right impossible to prove and completely legal and the poor unsuspecting sheep get shorn again. 

Considering the above one should avoid the Project Generator model and deals that have claims encumbered with royalty interests by insiders.

Don’t listen to me though…    I’m just a nave beginner….