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3/14/19

The CoatGate scandal (an IKN exclusive)

Here's what went down during PDAC 2019, ladies and gentlemen and better insight to the true motives of a person responsible with the financial well-being of public companies (i.e. the money of others) is difficult to imagine. Your author has been informed of the goings on here from a strong source and has ratified the story by checking with others involved.

The brokerage Cormark held a reception event during PDAC 2019 at King Taps, a trendy bar and restaurant in downtown Toronto. It was a invitation-only evening that reserved an area of the restaurant and what with it being darned cold during the week, the ticketed coat-check offered by the establishment became very popular. Come the end of the evening and one of the guests, who will remain nameless as his ID is not important to the story but was a guest at the event and not an employee of Cormark, went back to pick up his coat only to find it missing. As these things happen during evenings of alcoholic drinks and merriment, according to the IKN source the now coatless guest expected the mistake to show up the next day and to get his property back after somebody else's error was discovered. However, after two days passed and no news about either his coat or the belongings in its pockets, he decided to report it missing.

Which is when the fun began. As is correct under the circumstances, IKN learned that King Taps took the security breach very seriously and reviewed all security camera recordings of that evening. On doing so they quickly identified the main suspect, a man who is taped getting his own ticketed coat and then, while the coat-check staff member is distracted, deliberately swiping a second coat. He then immediately leaves the restaurant on his own with the two coats (i.e. not much chance he was helping a friend with his coat). With video evidence in hand, King Taps contacted Cormark, the organizers of the event. Cormark also took the incident very seriously and convened internal protocol to review the King Taps tape in order to put a name to the apparent thief. The reply was swift in coming, the man in the images was Jerry Huang, the CFO of not one but two Vancouver-based junior mining companies, namely IMPACT Silver (IPT.v) and Energold Drilling (EGD.v).

The security team proceed to contact Jerry Huang, who according to reports received by IKN and verified by a third party became very nervous and eventually told those investigating that he had made a mistake, didn't realize the coat wasn't his and had planned to return the coat. However, this flies in the face of obvious evidence, such as the way that Mr. Huang was in Toronto for two days after the coat was stolen, how he then got on the plane back to Vancouver with the coat in his possession and most interestingly, when he handed in the coat (to people from the same company in Vancouver, rather than in Toronto), all belongings that identified its true owner had been removed from the pockets (and there were multiple bits and pieces, including a whole bunch of business cards, the coat owner's PDAC conference badge and personal security keys). Exactly what an experienced thief would do when stealing an expensive coat, in fact.

People, these acts would be highly suspicious and point to a person of dubious moral character if they were butcher, baker or candlestick maker but screw that, this is a Chief Financial Officer of two junior mining companies! If you were invested in either of the companies who employs this person, IMPACT Silver or Energold Drilling, wouldn't you like to know about his extra-curricular activities involving his lax attitude toward the property of others? At the very least, we think that the companies in question owe it to us in the investment community to investigate these matters and make a statement or two about their choice of person in charge of the keys to the treasury of IPT and EGD.