Ann: Proposed issue of securities - CLZ, page-67

Buylow123...JV is not a lie?

No body has to lie.

In October 2021 Kingwest announced a JV to mine the Yunndaga underground. The deal was for Focus to mine about $450 million worth of gold over 5 years, giving KWR 40% of profits after cost. A company maker deal. Their share price nearly doubled over the next 5 or 6 weeks, but when deadlines for signing the JV weren't met, they delayed and delayed but didn't announce that the JV wasn't going to happen. Shareholders and locals had to hear through the grapevine that Focus due diligence was negative. Shares slid back to where they started from (without any official announcements) and KWR made a low key announcement many months later, tacked on to some positive news about something else.

The point is that KWR appeared to be very positive (practically jubilant), about the deal, even though they had equal or better knowledge about the ore bodies than Focus. Did they know that the probable results of a due diligence, did they communicate that negative possibility to the shareholders, Yes they did, in the fine print. But who cares about the fine print, it's the leader headline that pumps the share price.

KWR did not lie. CLZ doesn't lie. It's just a matter of where they put the emphasis and wording of their announcements to create an impression things are done deals and the money is as good as in the bank. When in fact it's just a pile of worthless paper.

Here, in the case of CLZ, half the commenters (who dont really know CLZ's history) wrongly assume that the money coming in is new money from a cashed up financier. The other half think it's just recirculating insider money, or giving a chance for insiders to cash out.