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2/10/16

Continental Gold (CNL.to): The market begins to see the problem

But only begins. It hasn't seen the real depth of the doo-doo in which scamster Ari Sussman finds himself again (and remember, he didn't tell anyone about the mess at Colossus before it was way too late either) because if the market got the fuller picture CNL wouldn't be down a mere 10% today, it would be plumbing new multi-year lows. The problem is alluded to in this section of the company's NR today and they do it as lightly as possible, even these BSsers know they need to disclose something else face courtrooms down the line. We quote:
"The court also indicated that ANLA (the National Environmental Agency) will not have sole exclusivity over permitting and maintaining environmental aspects of PINES projects."
One simple sentence, buried in the NR. Truly IKN says unto you, if 1) you don't know what that means 2) you're long CNL 3) you're out there there arguing the long case and defending its good name 4) you are the poster child for "ignorance is bliss". 

What that means is that CNL cannot get its environmental permits from the national government, what it was planning to do after doing that sneaky switcheroo last year. It now needs to involve regional body Coriantioquia and get their permission for the Buriticá project, too. 

That's bad news for CNL. 
Very bad news.
Very very bad news, isn't it Ari?

As IKN pointed out in this post on January 5th, "Continental Gold (CNL.to): Scratching an itch", Coriantioquia has already denied CNL its permit! And the dirty little secret that CNL wants to keep away from the market is that Coriantioquia denied that permit BEFORE the company pretended to withdraw from the regional permitting program and go with the national one! Here's one of the interesting bits from that January 5th post:

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"...the director of the permitting body Corantioquia, Alejandro González 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"."
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And now, thanks to Colombia's Constitutional court ruling yesterday that IKN told you all about (but nobody believed) they have to go back to Coriantioquia and get the permits from them, the very ones already denied to them before CNL pretended to withdraw and go "fast track" with the PINES system. Hey, get the feeling that track won't be as fast as you thought, Canadian brokerage anal yst suckers? Oh man, I'd love to be in that room when the "Hi guys! Long time no see!" meeting goes on between the regional enviro people and the CNL team.


Question: How many times does one man have to lie to you in the face before you realize he's a liar?