Contrary to the conspiracy theory Ghosta has made up about me.
About 3 years ago, I noticed a few things that seemed at odds with other speculative mining companies.
Firstly the directors had no skin in the game ie they did not seem to own shares. However, the company started producing shares at a phenomenal rate. Soon there were 32 billion of them, which seemed ridiculous, for a company with few assets. I commenced posting here, having bought the minimum amount of shares in order to get a feel for the company. After having been burnt on another spec, I was weary. I was met with quite a bit of resistance, but there was a few other shareholders who were starting also to question, the company's Modus Operandi. They had a very inexperienced Company Secretary, who needed his reports regularly corrected. The company claimed they were going to establish a gold mine , so people bought in and were excited- but they didn't want any negativity getting in the way .
Something of concern occurred, the Company did a 150/1 share consolidation. This decimated the equity value of existing shareholders. But they didn't get too upset, because they still thought they were going to get a gold mine.
Around this time they promoted convertible notes, but it would seem only privately off-market. Although at the time they didn't look like a very good way to invest 30 K , they offered a stellar return of 33 percent per annum. I was surprised people were subscribing. I had thought they were short-term, so the Marfia interest rate didn't look too outrageous. But it turned out, that these notes had no expiry date, so after the massive consolidations were completed & the original shareholder's equity was virtually wiped out, the Convertible Note holder's equity position remained unaffected by the dilution & they were on the payroll of 33 percent per annum. Original shareholders started complaining as many had taken a massive hit. Their sole supporter Garfmate mocked original shareholders for getting in too early - which enraged them no end.
Around this time, the company raised a lot of money to buy the Gekko. Another red flag occurred when shareholders saw who they had purchased it off. Then the ASX wrote the company a detailed information request. This document is essential reading for anyone who has invested here . The company's response confirmed shareholders' worst fears. They continued on with earthworks & getting water & building tailings dams. For the following year they raised more money, allegedly to start the mine. There were around 15 billion shares at that time & they dropped another 50/1 consolidation on shareholders . This was catastrophic for original shareholders, as it reduced the value of their shareholding by a factor of 7,500 ie my $500 became 1 cent.
A key feature of this company is the construction of these Convertable Notes, which didn't have a conversion date .
Basically the company has acted as a financial engineering company that plays around with its share capital, so that they continually on the never-never. As they were peeved many of their shareholders were slowly coming to see the blatantly obvious, that no company was unintentionally that stupid & wreckless. As raising capital from shareholders was virtually impossible, they went off-market to finance providers & started swapping equity for capital. A series of contradictory & conflicting deals were entered into. It became so confusing it became very difficult to understand, as deals were constantly collapsing & falling by the wayside.
The present situation seems to be the board wants to sell the Kat Gap project for 7 million, even though some 100 million has been poured into the company, & the board wants to keep the money to pay off their supporter creditors & the shareholders get zilch.
Shareholders have sat and watched, their equity, obliterated by consolidations, while the company has wandered off & done these incredibly obscure financial mezzanine deals off-market with finance companies. Whilst all this has occurred the CEO has collected $500,000 per year & the social media influencer Garfmate has bragged about that fact.
We need a forensic accounting investigation and a detailed site inspection report compiled by a mining engineer . This company is in long-term suspension from trading on the ASX, whilst attempting to liquidate its assets. It seems to have several conflicting deals currently in play. The company has a significant debtors list , which may have placed significant pressure on the board to settle ASAP. If Kat Gap were to be sold, the company would be a shell, possibly with considerable debt outstanding.
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