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1/5/16

Continental Gold (CNL.to): Scratching an itch

Can't help it, have to mention this because it's been gnawing at me ever since yesterday's post that noted the real reasons why the Continental Gold (CNL.to) EIA permit was denied last year. If you recall, the director of the permitting body Corantioquia, Alejandro Gonz├ílez Valencia, told Colombia's biznews people El Colombiano that the permit was denied due to water reasons (too much of it from the mine that wasn't being managed) and enviro-control reasons. The report also said that according to the director of the body (translated),  "...on September 11th 2015 the environmental impact permit modification was denied (by Corantioquia)."

Got that? September 11th 2015. That was a Friday.

Now compare that to the CNL.to news release dated Tuesday September 15th 2015 entitled "Continental Gold Elevates the Environmental Permit Application for the Buritica Project to the National Level" in which the only mention made of the previous permitting program was, "...Company has withdrawn its application for the modification of the EIA from Corantioquia, the autonomous regional environmental authority of the department of Antioquia".

Got that? CNL tried to make out on the 15th of September, four days (and two full trading days) after Corantioquia had  DENIED the permit, that they had withdrawn their application. Maybe, like me, you see a subtle difference between "withdrawn on 15th" and "denied on 11th".

And if we check out a price chart...



...there's more than a little bit of smelly about that, too. However, that's probably a side issue, the main one is how a company that had a permitting track running for nigh on seven quarters decided that it was not material that the permit had been denied. 

Y'see, in the warped world of market scum like Ari Sussman, your permit application isn't "denied", it's "elevated". Four days after the fact. And then idiots like you (or corrupted sellside brokerages that "advise" you) continue to believe him (or in the case of brokerages, pretend to believe him) when he promises shiny pretty things for the future.

And then Canada wonders why its capital markets have lost all credibility with serious money.

UPDATE: Reader LF sends in this link, which is simply wonderful. It's a video of Ari Sussman at an investor event dated November 2015 saying that CNL.to (and to quote the lying piece of excrement):
"...is cheap, really as a direct result of our change in permitting strategy. A lot of people misinterpreted that, that there's a complication in permitting in Colombia, that is not the case at all....this is the result in a change of strategy which ultimately resulted in a delay."

Class action, anyone? Thank you LF.