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2/11/12

message to subscribers

The power has been cut at IKN Nerve Centre for the past two hours and your humble scribe is now on his last few minutes' worth of laptop battery power. As Saturday afternoon/evening is just about the worst time such a blakcout can happen (workwise), you may have to forgive a late arrive of The IKN Weekly issue 145 tomorrow afternoon/evening. Or if you can't forgive, at least it gives you a reason why the weekly may arrive late tomorrow.

Headsup complete, now off to dig out more candles. If power supply comes back on in time this evening, i'll add an update to this.

UPDATE Sunday morning 6:40am. We welcome back power supply. An interesting day of catch-up writing awaits your author.


Mickey Fulp punched in California

Reports coming in of an altercation at this weekend's California Resource Investment Conference mining show in Indian Wells, with Mercenary Geologist Mickey Fulp taking a punch during the proceedings.  

And they wonder why your humble scribe doesn't go to these shows....

UPDATE: And this story gets better, as apparently his assaltant was Graham Harris, the piece of crap ex-Canaccord dude who ripped off the market via the ATW Gold (ATW.v) disaster and used his inside knowledge about how bad his company was doing to sell out his shares on prior knowledge before the worst happened to the stock....and not report his sales until much much later when all damage was done. We hear he's now running his promo pump on an iron ore thing up North called CapEx Ventures (CEV.v) and has suckered in the usual sheep to help the pump. It would seem Mr. Fulp isn't one of those.

UPDATE 2: And the good news is...
...not much damage done. This taken after the scrap, all smiles and small band-aids. Tis good and thanks due to TH for the photo.

Five days of metals and miners: Feb 11th

It's the 2012 Saturday morning slot again, with the last five days' worth of action in the gold bullion ETF (GLD), the silver bullion ETF (SLV), the miner ETF (GDX), the junior miner ETF (GDXJ) and the copper ETF (COPX), all in visual form:


Simple summing-up of last week: The metals beat the miners. Interesting that SLV should track its bigger sibling GLD so closely, though. As for the mining ETFS, the juniors list did worst (I hear the phrase "risk off" is now out of fashion, so what can I use nowadays, dedicated followers?) but the 3% to 4% downing of GDX and COPX aren't much to boast about, either.

2/10/12

The Friday OT: Eddie Cochran; C'mon Everybody

  • Justin Bieber is NOT cool. not even close.
  • Lady Gaga is NOT cool, gimme a break.
  • The Pop Idol du jour, Adele, 50 Cent, Led Zep, David Bowie, Radiohead... ALL NOT COOL

For true cool real cool, epitome of cool, take a look below. Eddie Cochran was cool. Cooler than anything or anybody ever. Cooler than a freeze-dried tomato in a refrigerator left abandoned at the South Pole all winter. He was cooler than cool even before your parents knew what cool was, let alone you. He was also a great musician who could play guitar, piano, sing well and write his own material. And then he died in a car crash (apparently he threw himself over his girlfriend at the time to protect her when it happened, so he was a gent to the last as well).



But most of all, his music still rocks over 50 years later. That's what really counts, so play this video and get some cool over you too.

Updating the North Springs Resources (NSRS.ob) scam

And death has now begun.

From $1.60 on Tuesday, to 40c today. Ouch. So it's time to wave goodbye to this, yet another scam tracked and ID'd by this humble corner of cyberspace. However, a couple of things left to say.

1) If you're daft enough to have bought this bullshit scam at the higher prices and are now confused and worried, the course of action is simple. Sell them all now and walk away carrying your loss, because if you think it's dropped a lot already, just wait til it breaks under 10c. Because it will. Soon.

2) It's also worth watching the unfolding because you get clues for future avoids, too. For example, today's NR out of North Springs (NSRS.ob) that tells of it hiring a geol named Ralph Shearing. Here's a snippet:
"Mr. Shearing founded and is currently CEO and President of Soho Resources Corp., a TSX Venture Exchange listed mineral exploration and development company."

We now know we should avoid Soho Resources (SOH.v) like the veritable plague as well, because either Shearing is naive or corrupt, but either way he's plug dumb stupid.

Peru: Ollanta's approval rating up to 58%

Peru pollster DATUM International today published its monthly approval number for President Ollanta Humala and with a 58% thumbs-up, the dude has added eight points to his tally and is kickin' trasero bigtime.


Add that 54% of Peruvian are happy about the way the Ollanta government is running the economy, which is a much bigger number on a national scale than is normally seen (usually you only get overall positives on this from the Lima middle class). Also good to see the annoying Keiko only getting 32% approval, mainly because people are fed up with her incessant whining about her father. Who's in jail cos he deserves it and isn't dying of cancer.

Chart of the day is...

...gold, because OH MY LORDY! IT'S DOWN 45 DOLLARS FROM YESTERDAY'S PEAK AND THE BULL RUN IS OVER AND WE'RE ALL GONNA DIE AND THE MAYANS AND EVERYTHING AND HELP ME I WANT MY TEDDY BEAR.

Oh, wait a moment....
I've always had this sneaking feeling that it must be quite fun to worry about every single market move that dares to go against you.

2/9/12

So you wanna be a journalist at Canada's Globe & Mail?

Here's what you need to have by way of qualifications, according to the paper's European bureau chief, Doug Saunders:


Sign of the times, no? I mean, screw investigative aptitudes, quality of previous work, age, experience, contacts list.....just be a giggle on twitter and the world's yer freakin' oyster, hackos.

Today's Baja Mining (BAJ.to) news release...

...is far too much fun to be spoiled by any of your humble scribe's normally pathetic, snarky trite thoughts so just go read it, linked here.

disclosure: no position in BAJ.to and no plans whatsoever to change that state of affairs.

LatAm currencies

This chart shows how the major traded LatAm currencies have got on versus the US Dollar in the last five years.


Spot the odd one out here as well, can you not? Well, perhaps one and a half, but the MXN faces different headwinds to those of its more Southerly cousins, what with being tied to the US economy more tightly.

Let's play Odd Man Out, gold project edition

Here's the question: Which of the following large tonnage, low grade bulk mining gold projects is the odd man out?

  • East Asia Minerals (EAS.v) at Miwah
  • NadaGold (NG) (NG.to) at Galore Creek
  • NadaGold (NG) (NG.to) at Donlin Creek
  • Andina (ADM.v) at Volcan
  • Sunward (SWD.v) at Titiribi
  • Eco Oro (EOM.to) at Angostura
  • Exeter (XRC.to) (XRA) at Caspiche
  • International Tower Hill (ITH.to) (THO) at Livengood

So have a good think and plump for your choice, then check out the answer below.












The answer is Sunward (SWD.v) at Titiribi. It's the only one with a realistic chance of ever becoming a mine.

Chart of the day is...

...gold versus silver, one year, using GLD and SLV as the accurate proxies:

Hugo  knows:

Mining PRs and the Ottotrans™, Part 54


The essence, the raison d'etre, of our ongoing series Mining PRs and the Ottotrans™ is to cut out the fluff and unimportant stuff and get to the heart of a junior mining news release, get to the real news that really matters. Well folks, this time we've outdone ourselves and managed to take a news release containing no fewer than 3,215 words and edit it down to just three while keeping the news you need to know fully intact.

Therefore, without further ado we offer up the NR out last night from Regulus Resources (REG.v) and Pachamama Resource (PMA.v):

This is what they wrote

February 08, 2012 17:10 ET

Regulus and Pachamama Announce Agreement to Merge, Proposed Financing and New Drill Results



WATERDOWN, ONTARIO--(Marketwire - Feb. 8, 2012) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES
Regulus Resources Inc. ("Regulus")(TSX VENTURE:REG) and Pachamama Resources Ltd. ("Pachamama")(TSX VENTURE:PMA) are pleased to announce the signing of a binding letter of intent dated February 8, 2012 (the "LOI") that provides for a merger of the two companies (the "Merger"). Regulus and Pachamama each own a 50% interest in the Rio Grande copper-gold porphyry project in Salta Province, Argentina. The two companies also intend to complete an equity financing of a minimum of $20 million in conjunction with the Merger in order to carry out the next phase of exploration on the Rio Grande project. First Quantum Minerals Ltd. ("First Quantum", FM TSX) has agreed to subscribe for that number of units of the proposed financing that will result in First Quantum owning 9.9% of the merged company. First Quantum currently owns approximately 9.9% of the outstanding shares of Regulus and no shares of Pachamama.
Wayne Hewgill, President of Regulus, and John M. Leask, President of Pachamama, commented as follows:
"The objective of the proposed merger is to combine our respective 50% interests in the Rio Grande copper-gold porphyry project in Argentina into one company. This will better position us to move forward with an aggressive drill program in 2012 to test the recent high- grade discovery hole (RGR-11-086) encountered in the Southwest Zone (see press releases of each of Regulus and Pachamama issued Dec 14, 2011) and to test other priority target areas on the property. Exploration to date has demonstrated that Rio Grande is a large, mineralized porphyry system that warrants an extensive drill program. Management of both companies believe that unitizing ownership of the Rio Grande project into a single company will enhance value for both Regulus and Pachamama shareholders as exploration of Rio Grande is aggressively pursued. We are delighted to have the support of First Quantum for this transaction. We intend to proceed quickly to complete the documentation and to call shareholder meetings as required to approve the Merger."
While management of both companies are strongly supportive of the proposed Merger, readers are cautioned that completion thereof is subject to several conditions including execution of formal documentation, regulatory approvals including approval of the TSX Venture Exchange (the "TSXV"), shareholder approvals, confirmatory diligence and closing of the proposed financing. No assurance can be given at this time that the proposed Merger will be completed or that the terms of the Merger and financing will not change materially from those described below.
Merger Terms
The LOI provides that the Merger will be based on the relative valuations of Regulus and Pachamama as agreed to by management of the two companies. Most of the value of each company is derived from its respective 50% interest in the Rio Grande project. After adjustments to account for estimated current working capital balances and for value ascribed to other assets of each company, an exchange ratio of 0.815 shares of Regulus for each share of Pachamama has been agreed to. If there is a difference in the financial information on the date of execution of the definitive agreement in respect of the Merger that would result in a difference in the foregoing exchange ratio of greater than 0.001 of a share; the parties have agreed to adjust the exchange ratio to reflect such difference.
The specific structure of the Merger has not yet been finalized but the parties will agree on the best way to effect the Merger having regard to all applicable corporate, tax and securities issues, including applicable laws and regulations in Argentina.
Financing Terms
Regulus and Pachamama intend to complete an equity financing (the "Financing") in conjunction with the Merger of a minimum of $20 million. The proposed Financing will be in the form of subscription receipts of Regulus at a price of $1.15 per subscription receipt, which will convert into units of the resulting issuer. Each unit will consist of one share and one half of a common share purchase warrant. The warrants will be exercisable at $1.60 for a period of 24 months from closing of the Financing into escrow. Proceeds from the Financing will be placed in escrow on closing of the Financing and will be released to the Resulting Issuer upon closing of the Merger.
First Quantum has agreed to subscribe for that number of units of the proposed Financing that will result in First Quantum owning 9.9% of the resulting issuer. First Quantum currently owns approximately 9.9% of the outstanding shares of Regulus and no shares of Pachamama. The resulting issuer will also grant First Quantum a contractual pre-emptive right to maintain its 9.9% equity interest in the resulting issuer in the event of future financings.
Regulus has retained Dundee Capital Markets to lead this Financing and the syndicate will also include Axemen Resource Capital Ltd.
About The Resulting Issuer
Name and Stock Exchange Listing
The parties have agreed that the resulting issuer will retain the name of Regulus Resources Inc. Regulus will apply to list the common shares issuable in connection with the Merger and the Financing on the TSX.V upon completion of the Merger.
Share Capital
Based on the current share capital of Regulus and Pachamama, the resulting issuer will have approximately 76,687,365 million shares outstanding at closing of the Merger (not including the proposed Financing). All outstanding options of Pachamama will be exercised immediately prior to the effective date of the Merger.
Senior Management
The proposed executive officers of the resulting issuer will be as follows:
Chief Executive Officer: John Black.
Mr. John Black is an economic geologist with 30 years of global exploration experience. He received his Master's degree in Geology - Ore Deposits Exploration from Stanford University in 1988. Mr Black was most recently the President and CEO of Antares Minerals Inc. ("Antares") a position he held from May of 2004 until the sale of Antares to First Quantum in December of 2010. Prior to his work with Antares, Mr. Black was Western Mining Corporation's Technical Exploration Manager for porphyry copper exploration in Chile and Peru, and Principal Geologist for Rio Tinto, Kennecott's parent corporation, exploring for porphyry copper deposits in northern Chile and Ecuador.
Chief Operating Officer: Wayne Hewgill
Mr. Hewgill is a Professional Geoscientist with over 25 years of experience in the mineral exploration industry in Canada, Australia, New Zealand, Zimbabwe and South Africa. He has been the President and CEO of Regulus from December 2010 to the present. Prior thereto he was Vice President, Corporate Development with Antares and before that he spent five years as a mining analyst for two Canadian financial institutions focusing on early and advanced stage exploration companies. He holds a B.Sc. in Geology from the University of British Columbia and is registered as a Professional Geoscientist (P.Geo) with APEGBC.
Chief Financial Officer: Mark Wayne
Mr. Wayne is a former lawyer and he holds a Chartered Financial Analyst designation. He has raised money for, and has served as a director or officer of, a number of public and private companies in the mining, oil and gas and technology sectors. Mr. Wayne was a co-founder and the Chief Financial Officer of Antares until its sale in 2010.
Advisory Board - Technical Committee Chairman: Dr. Kevin B. Heather
The resulting issuer expects to form a Technical Committee in order to provide additional technical expertise to the company. Dr. Kevin B. Heather has agreed to serve as Chairman of the Technical Committee. Dr Heather is an economic geologist with more than 30 years of field experience in North and South America. He received a BSc. (honours) degree in geology from the University of British Columbia in 1982, a MSc. degree in geology from Queen's University in 1985, and a PhD. degree from the University of Keele (Keele, England) in 2001. Dr. Heather served as VP Geology with Antares from 2004 until the sale of Antares in 2010. Prior to that, Dr. Heather worked as a consultant and as geologist for Barrick Gold and Anglogold Ashanti.
Dr. Heather in conjunction with company management will look to add new members with a special focus on adding recognized geological, metallurgical, and engineering professionals to the committee to guide advancement of the Rio Grande project.
Board of Directors
The LOI contemplates that the Board of Directors of the resulting issuer will initially consist of five members, namely John Black, Mark Wayne and Jim McDonald, each of whom is currently a director of Regulus, and John Leask and Gordon Leask, each of whom is currently a director of Pachamama. Brief bios of the non-management directors are as follows:
John M. Leask: Director
John Leask has a Bachelor of Applied Science degree in geological engineering from the University of British Columbia and is a Professional Engineer. He has served as a director of Mansfield Minerals Inc. since June 1998 and as president of Pachamama since its inception in 2008. Mr. Leask was the President and CEO of White Knight Resources Ltd. until its takeover by U.S. Gold Corporation in 2007. Mr. Leask has 30 years of experience in the exploration and mining business at all levels.
Gordon. P. Leask: Director
Gord Leask has a Bachelor of Applied Science degree in geological engineering from the University of British Columbia and is a Professional Engineer. He has served as President of Mansfield Minerals Inc. since 1991 and was a director of White Knight Resources Ltd. until its takeover by U.S. Gold Corporation in 2007. Mr. Leask has over 26 years' experience in the exploration and mining business.
James McDonald, B.Sc., P Geol.: Director
Mr. McDonald began a 25 year career in the mining industry working as a project geologist with Noranda Explorations Ltd. Mr. McDonald has been a founding member in developing several successful junior exploration companies such as White Knight Resources, Black Bull Resources and National Gold (now Alamos Gold Inc.). Mr. McDonald is currently the President and CEO of Kootenay Gold Inc.
Break Fee
Each company has agreed to pay the other company a break fee of $1.2 million if the proposed Merger is not completed because the parties fail to recommend to their respective shareholders to vote in favour of the Merger at a duly called meeting of shareholders, or a party accepts a proposal to complete an alternative transaction.
Lock-Ups
Each of the directors or officers has agreed to enter into lock-up agreements to irrevocably support the Merger. Collectively the directors and officers of Pachamama, following exercise of all options, will hold 8,424,536 Pachamama shares (17.5%) and the directors and officers of Regulus hold 2,607,719 Regulus shares (7.1%).
Business of the Resulting Issuer
On successful completion of the Merger, the resulting company will focus on the exploration and development of its 100% owned Rio Grande copper-gold porphyry project. Rio Grande is located in the Puna region of Salta Province, northwestern Argentina, approximately 450km west of the city of Salta. Mineralization occurs within a distinct 2-km diameter ring-shaped fracture zone that was the focus of the pre-2011 drilling. In December, 2011, Regulus and Pachamama announced the results of an initial 43-101 resource estimate on the property, based on drilling to the end of 2008. The resource estimate included 637,025 oz gold and 416 million lbs copper in the indicated category and 1,002,458 oz gold and 674 million lbs copper in the inferred category.
To view Table 1: Resource Highlights, please visit the following link: http://media3.marketwire.com/docs/208table.jpg.
Recent Results at Rio Grande
On December 14, 2011, Regulus and Pachamama released results from five additional drill holes from the current 15,000 metre drilling program at Rio Grande. These include results from drill hole RGR-11-86 which discovered a new gold-rich, high-grade copper-gold zone. Specifically, drill hole RGR-11-86 intersected three main mineralized intervals, including the best intercept encountered to-date at Rio Grande, as follows:
1) An upper, gold-dominant oxide zone of 49.60 metres with 0.26% Cu, 1.34 g/t Au, and 3.10 g/t Ag starting at a depth of 64 metres.
2) A zone of gold-rich, high-grade copper-gold-silver sulphide mineralization starting at a depth of 293 metres with an interval of:
    • 257.2 metres grading 0.53% Cu, 1.20 g/t Au, 1.59 g/t Ag (1.19% Cu Eq or 2.39 g/t Au Eq ) including
    • 54.5 metres with 1.34% Cu, 4.52 g/t Au, and 2.68 g/t Ag (3.79% Cu Eq or 7.58 g/t Au Eq).
3) A lower copper-gold-silver-molybdenum sulphide zone with 120 metres containing 0.33% Cu, 0.34 g/t Au, 5.95 g/t Ag, and 0.011% Mo (0.61% Cu Eq) starting at a depth of 598 meters.
This hole is considered a significant breakthrough at Rio Grande and future drilling will focus primarily on delineating this new zone.
The above samples were analysed with the following methods: Au - 30 g FA with AA Finish, Cu - four acid digestion for trace Cu and four acid digestion and AAS for ore grade Cu, 35 element Aqua Regia ICP-AES.
New Drill Results
Regulus and Pachamama hereby announce results from five previously unreported drill holes from the current 15,000 metre drilling program Rio Grande.
Results are presented from drill holes RGR-11-087 through RGR-11-91. The more significant results include the following:
  • RGR-11-087 - Intersected a strongly altered diorite intrusive with broad low-grade Cu- Au mineralization averaging 0.13 g/t Au and 0.08% Cu over 150 metres. Lithology and alteration are distinctly different from nearby drill hole RGR-11-086 and more closely resemble the strongly altered central portion of the system.
  • RGR-11-088 - Encountered a new zone of oxide gold m ineralization with 104.5 metres averaging 0.66 g/t Au beginning at the surface, including 35 metres with 1.03 g/t Au. This is the second intercept of near-surface oxide gold mineralization found in the Southwest Zone. This new near-surface zone may relate to similar mineralization in the upper portion of drill hole RGR-11-086, 550 metres to the south.
  • RGR-11-091 was lost at 500 metres depth in Cu-Au mineralization due to mechanical issues. The hole ended in increasingly strong fine grained disseminated copper sulphide mineralization with 11.3 metres averaging 0.57% Cu, 0.48 g/t Au and 3.47 g/t Ag.
RGR-11-087 SW Zone From To Metres Cu Au g/t Ag g/t Cu Eq Mineral Zone
TD- 969.50
264.00 274.00 10.00 0.05% 0.24 0.24 N/A Oxide
RGR-11-088 Central From To Metres Cu Au g/t Ag g/t Cu Eq Mineral Zone
TD - 1115.60
2.00 106.50 104.50 0.09% 0.66 1.40 N/A Oxide

including 71.50 106.50 35.00 0.04% 1.03 2.54 N/A Oxide
RGR-11-090 Central From To Metres Cu Au g/t Ag g/t Cu Eq Mineral Zone
TD 966.80
195.00 228.00 33.00 0.14% 0.28 0.55 0.28% Oxide
RGR-11-091 Central From To Metres Cu Au g/t Ag g/t Cu Eq Mineral Zone
TD 501.70
263.00 297.00 34.00 0.07% 0.25 5.81 N/A Oxide


392.00 498.00 120.00 0.28% 0.32 1.48 0.46% Sulphide

including 486.70 498.00 11.30 0.57% 0.48 3.47 0.86% Sulphide
Table 2: Assay results RG-11-087 to RGR-11-091
Advisors and Counsel
Regulus' financial advisor is Dundee Capital Markets and its legal counsel is Burnet, Duckworth and Palmer LLP. Pachamama's financial advisor is Axemen Resource Capital Ltd. and its legal counsel is McCarthy Tétrault LLP.
About Regulus Resources Inc.
Regulus Resources Inc. (TSX VENTURE:REG) is a mineral exploration company formed in December, 2010 in connection with the sale of Antares to First Quantum Minerals Ltd. (TSX:FM). Regulus is currently exploring the Rio Grande copper-gold porphyry project in Salta Province of NW Argentina on a 50/50 joint-venture basis with Pachamama.
About Pachamama Resources Ltd.
Pachamama is a mineral exploration company which was formed in October 2008 as a spin-out from Mansfield Minerals Inc (TSX VENTURE:MDR). The principle asset of the company is its 50% interest in the Rio Grande copper-gold porphyry project in Salta Province Argentina. The company has the same managemnt team as Mansfield Minerals Inc.
About First Quantum Minerals Ltd.
First Quantum (TSX:FM)(LSE:FQM)(LuSE:FQMZ) is a rapidly growing mining and metals company with two operating mines in Zambia and Mauritania. First Quantum also has five development projects in Australia, Finland, Zambia and Peru. The company currently produces copper and gold from the Kansanshi Mine in Zambia and the Guelb Moghrein Mine in Mauritania. First Quantum expects to be among the global leaders in nickel production once its Ravensthorpe and Kevitsa projects are in steady-state production in 2012.
All of Regulus' exploration programs and pertinent disclosure of a technical or scientific nature are prepared by, or under the direct supervision of, Wayne Hewgill, P.Geo, and Regulus' President, who serves as Regulus' qualified person (QP) under the definitions of National Instrument 43-101.
All of Pachamama's exploration programs and pertinent disclosure of a technical or scientific nature are prepared by, or under the direct supervision of, John M. Leask, P.Eng., President and CEO of Pachamama, who serves as Pachamama's qualified person (QP) under the definitions of National Instrument 43-101.
Regulus' security, chain of custody and quality control is described on their website and can be reviewed at: http://www.regulusresources.com/BestPractices/SamplingMethodologies.aspx
Forward Looking Information
Certain statements regarding Regulus and Pachamama, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' and Pachamama's control. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Specifically, and without limitation, all statements included in this press release that address activities, events or developments that either Regulus or Pachamama expect or anticipate will or may occur in the future, including the proposed merger and financing as described herein, and management's assessment of future plans and operations and statements with respect to the completion of the anticipated drilling program, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' and Pachamama's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward- looking statements. Although Regulus and Pachamama believe that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct
Regulus and Pachamama do not undertake any obligation to publicly update or revise any forward- looking statements other than required by applicable securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 And this is what it means:

Hole 87 missed.


dyodd

2/8/12

Spinetta

QEPD

Iacono.....Iacono....now where have I heard that name before?

Much noise and chatter has been created by this superduper story over at Stockwatch today, as it reports on the OSC filing against a certain Eda Marie Agueci, former executive assistant to the chairman of GMP Securities. Most of the talk is due to the connection Ms. Agueci has with Ian Telfer, head honcho at Goldcorp, but your author (as is his normal wont) takes the road less traveled by and notes one of the other people caught up in this saga, a certain Santo Iacono. Here's an extract from the Stockwatch piece:
"As Ms. Agueci worked at GMP, any shares she personally held would be subject to review by the firm's compliance department. To get around this, Ms. Agueci bought the stock in an account that was in the name of her brother-in-law, Santo Iacono, the OSC says."

  • Now, it might be a mere coincidence that Mister Santo here has the same last name as our much-adored provider of lawyers' fees, Serafino Iacono. The Googlything doesn't show a family connection between Serafino and Santo, por ahora. 
  • And hey, it might just be a wild coincidence that GMP is the go-to financial advisor to a whole boatload of Serafino Iacono companies in Colombia such as Pacific Rubiales (PRE.to) and Gran Colombia Gold (GCM.to) (and there are more where they came from, all with direct connection to GMP).
  • And hey, guess which financial house came to Serafino Iacono's rescue when his Alange Energy was caught bullshitting the market, saw its overhyped share price plummet, got a class action suit slapped on its ass and as part of the restructuring changed its name to Petromagdalena (PMD.v)? Yep, you've been guessing already haven't you, it's GMP.

So the woman fingered as a serial insider trader by the OSC who worked in a high level post in GMP and used her brother in law, named Iacono, to run an illegal trade, worked at the same place as the object of Serafino Iacono's affections as witnessed here (page 9):
“We’ve done extremely well by GMP. They have played a key role in our evolution to a world class, diversified oil and gas producer. Their remarkable expertise, execution skill and valuable relationships make GMP our advisor of choice.”
 
Serafino Iacono
Co-Chairman, Pacific Rubiales Energy Corp.

As the old saying goes, you can choose your friends but you can't choose your family. dyodd dude.

North Springs Resources (NSRS.ob) pulls the plug on its scam

We mused on it only yesterday in this post. Today's the day.


Owl Please!
dyodd, dude

Copper

It's no longer a case of whether copper regains a 4-handle. It's a case of when. My guess on that is 'soon'.

Chart of the day is...



Feb 3/12 Feb 2/12 Santos, Paulo Alexandre Direct Ownership Common Shares 10 - Disposition in the public market -250,000  
Feb 3/12 Feb 2/12 Santos, Paulo Alexandre Direct Ownership Common Shares 51 - Exercise of options 250,000 $0.150
Feb 3/12 Feb 2/12 Santos, Paulo Alexandre Direct Ownership Options 51 - Exercise of options -250,000  
Feb 3/12 Feb 1/12 Yamana Gold Inc. Direct Ownership Common Shares 10 - Disposition in the public market -9,000,000 $0.500
Jan 31/12 Jan 25/12 Salamis, George Direct Ownership Options 50 - Grant of options 500,000  
Jan 27/12 Jan 25/12 Santos, Paulo Alexandre Direct Ownership Options 50 - Grant of options 250,000  
Jan 26/12 Jan 25/12 Smith, Gregory F. Direct Ownership Options 50 - Grant of options 250,000  
Jan 25/12 Jan 25/12 Reynolds, John Direct Ownership Options 50 - Grant of options 250,000  
Jan 25/12 Jan 25/12 Johnson, Barry Direct Ownership Options 50 - Grant of options 800,000 $0.490
Jan 25/12 Jan 25/12 Farrauto, Edward Charles Direct Ownership Options 50 - Grant of options 500,000 $0.490
Jan 25/12 Jan 24/12 Forster, Douglas Burton Direct Ownership Options 50 - Grant of options 1,000,000 $0.490
Jan 24/12 Jan 20/12 Reynolds, John Direct Ownership Common Shares 10 - Acquisition in the public market 100,000 $0.320
Jan 31/12 Sep 15/11 Salamis, George Direct Ownership Common Shares 00 - Opening Balance-Initial SEDI Report    
Jan 31/12 Sep 15/11 Salamis, George Direct Ownership Options 00 - Opening Balance-Initial SEDI Report 250,000


That Yamana (YRI.to) (AUY) sells its 9m shares is one thing and they may be doing it for their own sweet in-house reasons. But a 250k dump by Paulo Santos, the Calibre CFO, at the same time?

2/7/12

Mining PRs and the Ottotrans™, Part 53


Good evening everybody, we at IKN Nerve Centre certainly hope this missive finds you in good fettle and fine spirits. Here we are catching up with the day's affairs, in particular one news release from the pukkah pukkah fellows over at Gold Bullion Development Corp (GBB.v):

VANCOUVER, Feb. 7, 2012 /CNW/ - Gold Bullion Development Corp. (TSXV:GBB.V - News) (OTCPINK:GBBFF.PK - News) ("Gold Bullion" or the "Company") is pleased to announce that it has adopted a shareholder rights plan (the "Rights Plan") designed to encourage the fair treatment of its shareholders in the event of an unsolicited take-over bid for shares of the Company. The Rights Plan is designed to give the Company's shareholders sufficient time to properly assess a take-over bid without undue pressure and to give the Company's Board of Directors time to consider alternatives that allow the Company's shareholders to receive full and fair value for their common shares.
Pursuant to the Rights Plan, each holder of record of the outstanding common shares of the Company on February 1, 2012 will be issued one right per common share. The rights will trade with the common shares and be represented by the certificates representing common shares. Although the Rights Plan is effective immediately, it is subject to TSX Venture Exchange approval and must be ratified by the shareholders of the Company within six (6) months of its adoption. The Rights Plan will be submitted to the shareholders of the Company for ratification at the Annual General and Special Meeting of Shareholders to be held April 12, 2012.

And this is what it means:

VANCOUVER, Feb. 7, 2012 /CNW/ - Gold Bullion Development Corp. (TSXV:GBB.V - News) (OTCPINK:GBBFF.PK - News) ("Gold Bullion" or the "Company") is pleased to announce that it has adopted a shareholder rights plan (the "Rights Plan") designed to encourage the fair treatment of its shareholders in the event of an unsolicited take-over bid for shares of the Company. This is because we're really really concerned about the rights and well-being of our shareholders and really really want to protect them from anything that those nasty 'capitalist' people out there might want to do to our company. I mean, have you seen how goddam popular our stock has been lately and how goddam popular our shares have been in the open market? Man, you can just see 'em all, falling over themselves to buy up our float and zoom the stock higher on speculation of a buyout in the pipeline, can't you? Anyway, what we're doing today is protecting YOU, not US, because YOU are the most important people in the world for us particularly when it's you guys that will buy into the next dilution and keep our monthly salaries flowing. It makes all the sense in the world for US to protect YOU in these circumstances, doesn't it? Well, doesn't it?

So how has this stock got on since Louis Lobito James of Casey Research, aka Louis "Never Been Invited To Tour A Junior Mining Project That I Didn't Like" James reco'd this to his flock at 50c back somewhere in mid-2011 (the eaxct date escapes me)? What, less like 6 or 8 months ago, is that all?


dyodd, dude

I delete comments (an in-house notice)

Just a quick post here to say that I have no problem whatsoever in censoring any hate-filled, bullshit comments anyone leaves under IKN posts* such as the flaming that Mark who lives in Huntingdon England (note England, not the UK, I wouldn't lump Scottish or Welsh or Northern Irish in with his jingoistic nonsense) decided to leave under that last post about The Falklands/Las Islas Malvinas, or the utter moron who thinks he has some God-given right to free speech over Trevali Resources and because of that, has put his blood pressure under stress by trying to post his insults here instead of somewhere else.

There are thousands, nay millions of websites, blogs and all sorts that accept trollers but this is not one of them. If you have something constructive to say then by all means say it, but don't think for a minute that you can spill the hate you feel for an issue or your humble scribe and I'll just let it sit there. Go play on Stockhouse (TV.to anon) or The Daily Mail (Mark from Huntingdon) and provide all the free speech you want to anyone that cares to listen, but IKN is the proud purveyor of an orderly and tightly-run dictatorship, not one of your old-fangled democracies. Le blog, c'est moi.

* you can't see the option on the main front page, but the comments box is available under the individual posts

Falklands/Malvinas: Today could be interesting

News about news to come, as President Cristina Fernández de Kirchner of Argentina has called a press conference for 7pm local time today (that's 5pm EST, six hours from now) to make an announcement of some sort about The Falkland Islands/Las Malvinas. The interesting bit is that she's invited the leaders of the main opposition parties in Argentina to join her at the presser in some sort of show of united front or another.

The other interesting bit is that nobody seems to know what the meat of the presser is going to be about, which is unusual in a country where the government circles leak info to the press like a broken colander. Best guesses so far are an Argentina that will accuse the UK govt of "militarizing" the issue with its sending of a nuclear sub and a top line destroyer to the zone (as well as Prince Billy's 6 week tour of duty). Apart from that, little is known and it's all a box of surprises waiting to be opened. If it turns out to be a damp squib so be it, but if it's enough fun expect an update on this post later.

UPDATE: Old pallypal Tenpercent pipes up with this thought:
"I hope Malvinas announcement is Cristina challenging Dave to a duel, she gets the gun"

North Springs Resources (NSRS.ob) is still a scam

It's an impressive pump for sure, but please don't fool yourselves (or waste your time with any comments either) into thinking there's anything even remotely legit about this company. It's a scam, period.


If you have a contrary opinion to that, well fine. But before you tell me about it you have a job to do (and hell, i'm even going to make it easy for you with a link)
1) Go to the SEC filings page (it's right here, easy peasy)
2) Check how many shares out this company has (hint: 10-Q filing)
3) Work out its market capitalization (for those of you just joining us, that's what the market thinks this company is worth and you do it by multiplying the number of shares out by its stock price).
4) Tell me how this company, with nothing of any note as assets, can have a market cap edging to U$1Bn.

And if you can't do that, don't even bother mailing me or commenting because it means you're stupid.

The thing is with these pump'n'dump vehicles is that only the people in the middle of it all, the scumbags like the visible Harry Lappa and the real bosses behind the scenes, that know how high it's going to go before they pull the plug. The rest of the world, like you and me, we're just guessing. So if you think it can go higher and are stupid enough the trade these empty vehicles (because let's be clear about this, you gotta be highline dumbfuck stupid to consider this as a legitimate investment vehicle for more than 10 seconds, let alone buy some) don't let me stop you! Hey, be my guest and grab hold for a day or two if you want, but don't come running to IKN* with the "Jeesh, you were right after all" mails and comments when it's all over and you're left holding wallpaper share certs.

NSRS and the plethora of scam stocks like it on the OTC are the financial equivalent of Russian Roulette: You can win a round of that game, but it's not one built for long-term success (and that putting it mildly). However, the guys in the middle of this NSRS scam are becoming very rich thanks to your base level greed glands. It's difficult to decide which group are the bigger assholes in fact, because if you're insistent on being an asshole in this life, it's probably better to be a rich asshole than a poor asshole.


*which reminds me of a fave joke when a kid best told using the Terry Jones woman voice from Monty Python: "If you break both your legs don't come running to me"

Chart of the day is...

...The Brazilian Real versus the US Dollar, 2003 to date.

Nuff said. And thanks for dinner, you-know-who.

2/6/12

Dear subscribers

Just to confirm that I've just sold the one I said I'd almost certainly sell. fwiw.

Chart of the day is...

...this.


Click on it to make it bigger if required. Thanks to reader 'JT' for the send-in. I don't know where he got it from, though.

2/5/12

The IKN Weekly, out now


IKN144 has just been sent to subscribers. Enjoy the Superbowl if you're watching it. G'night.

The Mex Files on AMLO's election bid

The Mex Files is back (YAY!) and kickin' the Mexico English blogosphere into shape again after a long hiatus and RG was on form this morning with this note that looks at the chances of Andrés Manuel López Obrador (AMLO) in this year's presidential election. Along the way he notes the way ex-Pres Vicente Fox, once the hardest of the hard line opponents to AMLO, grudgingly admitting that AMLO has a point on certain policies. Other things too that point to a softening of AMLO's political stance and the way he's positioning himself in the upcoming campaign. Here's an extract from the Mex Files piece to whet your appetite:
AMLO does seem, as I’ve said before, to be putting his effort into downplaying the “radical, fiery leftist populist” image ... going out of his way to win over the urban middle class and reassure the business community that he is neither Oliver Cromwell nor Ché Guevara, suggests that while Fox may have learned a lesson from AMLO, AMLO is learning from Fox… positioning himself to be the “useful vote” for change.

The whole thing reminds your author sharply of the route taken by Ollanta Humala in the two election campaigns it took him to become President of Peru. Anyway, go read the whole thing over at Mex Files, you'll know a lot more about the shape of the campaign to come once you have.