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6/29/19

The top three most visited IKN posts this week are...

...in reverse order:
.
Third Place: "Novo Resources (NVO.v): "My brother made me do it" and other such balderdash from Quinton Hennigh". The very best scams are the ones where nobody ever realizes the scam.

Second Place: "Fun at the Sherritt International AGM". Reader J did some counting and thinks it was John Berry at Foyston, Gordon & Payne. Looks likely, but this is unconfirmed.
.
First Place: "Belo Sun (BSX.to): And we wudda gotten away with it too...". A small victory. Happy.

6/28/19

The Friday OT: Gianluca Motta/Molly/Deadmau5 remix; Not alone

I cannot begin to tell you about the sound of this.



So hear it for yourself. Youtube here

6/27/19

Novo Resources (NVO.v): "My brother made me do it" and other such balderdash from Quinton Hennigh

TY for the heads-up reader "ID". This is freakin' hilarious. Go here to read the story behind Quinton Hennigh's "live jackhammer show" pump job of Novo Resources (NVO.v) at Denver in 2017. The funny bits include:
  • QH tells us his brother gave him the bright idea
  • He admits it was a promo pump job that ballooned the share price far higher than it deserved
  • However, he says that we can now trust the company to do good science and is excited for the future, Well, hoodathunkit, eh?

Only in Canada.


The Tinka Resources (TK.v) PEA

Tinka Resources (TK.v) previously guided to deliver the PEA on its Ayawilca project by the end of 2q19, which is officially Sunday and which means to comply, TK.v would need to file its announcement tomorrow Friday June 28th. 

We hear today that the PEA is to all intents and purposes ready. However, the company has decided to take a couple of extra days, go through all items with a critical eye and not beat itself up about hitting the exact date. The PEA will be announced on Tuesday, July 2nd and now you know as much as I do.

Pretium TA

If it's true what they say about gaps filling, PVG has more to come.


Fun at the Sherritt International AGM

Reader 'J' was kind enough to give this desk the heads-up, thank you, sir.

Here's the NR, here's a section of the voting results table:



I mean, even the other 83% and 84% approval votes aren't much to boast about and there was a rough 17m block vote that went against every member of the gang, but it seems that Mr. David Pathe has picked up an extra special fanclub along the way and escaped being voted down by the slimmest of margins (it only needed another 3.5% or so of votes to show up against him and that would have been that). But why was he so unpopular? We get a clue in the NR footnotes:

"1 Sherritt believes that the percentage of votes withheld for David Pathe was negatively impacted by a practice known as “empty voting” whereby shareholders exercise their legal right to vote after selling their positions. More specifically, Sherritt believes that one of its largest institutional investors disposed of much, if not all, of its position subsequent to the record date of the meeting, and nevertheless withheld its vote against Mr. Pathe. Mr. Pathe would have received 74.54% votes in favor without the impact of this “empty voting” had this shareholder’s votes not been so withheld. Sherritt experienced a turnover of 112,082,964 shares, or 28% of its outstanding shares, during the five-day period following the record date of April 25, 2019. The Canadian Coalition for Good Governance has categorically rejected empty voting as a practice because it undermines the tenets of majority voting."

One man's empty vote is another's protest vote, of course. And if we look at the share price chart for S.to in the period, we get an idea of the price change that 112m share churn caused:




As reader J rightly pointed out, being willing to accept a big loss like that just to try and vote down one single board member is true dedication to a cause, Pathe must have really pissed them off.

6/26/19

Belo Sun (BSX.to): And we wudda gotten away with it too...

...if it weren't for you pesky kids and that dawg. Ahh, here's one of those small victory moments. I know they don't dent much into the great scheme of things, but it's nice to have made a difference somewhere along the line. 

You may remember this post dated June 4th entitled, "Belo Sun (BSX.to) is the poster child for everything that's wrong in Canadian junior mining", which explained what the BSX board was quietly trying to push through in its upcoming AGM? It went on a bit, but here's how the summing-up came at the end:
  • The BSX cronies get paid a crazy amount of money in the first place.
  • For at least five years (and arguably longer) they have done nothing to move their project forward, but still cut themselves fat cheques.
  • But now, if they are fired for doing a bad job they get fat bonuses
  • And even if the shareholders of the company (i.e. the real owners) boot them out, this is now considered a "change of control" event and they still get an obscene payola.

Cut to today and this little piece of wonderful. Here's the main bit of the NR, your humble scribe adding a bit of dark ink:


TORONTO, June 26, 2019 (GLOBE NEWSWIRE) -- Belo Sun Mining Corp. (“Belo Sun” or the “Company”) (TSX: BSX) announces that it has entered into a cooperation agreement (the “Agreement”) with Sun Valley Gold LLC and Sun Valley Gold Master Fund, Ltd. (together “Sun Valley”) pursuant to which Belo Sun and Sun Valley, among other things, agree to work together to identify three new independent directors to appoint to the Company’s board following the Belo Sun annual shareholder meeting scheduled for June 28, 2019.  Upon the appointment of the new director nominees, two Belo Sun directors will agree to step down from their respective roles on the board to allow room for the new directors.  Following these changes, the Belo Sun board will consist of a total of six directors. 

“We are pleased to have entered into a cooperation agreement with our largest shareholder that is both responsive to their views and allows management to focus on advancing the Company’s Volta Grande project in Brazil,” said Peter Tagliamonte President and CEO. “We look forward to having Sun Valley continue as a long-term, supportive shareholder of the Company.” 
Pursuant to the Agreement, Sun Valley has agreed to vote all of the common shares of Belo Sun within its control in favour of the nominees recommended by the Company at the upcoming shareholder meeting through to the 2020 annual general meeting of shareholders of Belo Sun.  

In other words, Sun Valley threatened BSX with activist voting if BSX didn't do something about this scandalous one-way street of benefits to the cozy Bharti gang. But more importantly, those self-serving wastes of time don't have unfettered control any more. 

One point scored by IKN. The game continues.


x

Timestamping a bet

This post notes the following bet between your humble scribe and Brent Cook.
"Brent Cook says that the Escobal silver mine in Guatemala, owners Pan American Silver (PAAS), will receive all necessary permits from the government of Guatemala and announce the imminent re-start of mining by the end of this year."

I, of course, disagree. The bet runs to December 31st 2019, at which point the loser must buy a bottle of red wine for the winner. The wine is of the loser's choosing, but must retail at over U$100 per bottle.

6/25/19

Newmont Goldcorpse (NEM) underperformance continues

Here's how much Newmont Goldcorpse (NEM) is lagging Barrick (GOLD) and the Gold & Silver Miner's Index (XAU) through this new gold bull:


Buy Goldcorpse, live with the consequences.

Osisko sells its shares of Victoria Gold (VIT.v) to Orion

The NR starts like this:

TORONTO, June 25, 2019 (GLOBE NEWSWIRE) -- Victoria Gold Corp. (TSX.V-VIT) (“Victoria” or the “Company”) announces today that its two largest shareholders, Orion Mine Finance Inc. (and its affiliated funds) (“Orion”) and Osisko Gold Royalties Ltd. (“Osisko”) have agreed a transaction whereby Orion Co-VI Ltd., a fund controlled by Orion, will purchase from Osisko all 154,517,996 common shares of the Company owned by Osisko at a purchase price of $0.46 per common share (the “Transaction”), which is based on a premium of 15%, which is the maximum allowable premium for a transaction of this type. Together with the 163,636,364 common shares of the Company already controlled by Orion, Orion will beneficially control, directly or indirectly, 318,154,360 common shares of the Company as a result of the Transaction, representing approximately 37.1% of the issued and outstanding common shares of the Company. Orion also owns warrants to purchase an additional 25,000,000 common shares of the Company at a price of $0.625 per common share that expire on April 13, 2023.

Full thing here. Anyone who considers this a bullish development for VIT.v needs their head examining, this is what happens when an insto that thinks it's smart about Canadian mining comes up against a man who is.

6/24/19

Chart of the day is...

...the centre of the known financial universe, the US Dollar:


It's going under 90.

The IKN Weekly, out now


I really like Felix the Cat


IN526 has just been sent to subscribers, home to just about the possible worst commentary on the week in mining. A total waste of time.

PS:  Subscribers using Hotmail may need to check trash/spam in case of apparent non-delivery, that mailbox system seems to have tweaked its anti-spam software a little too hard and there were several people who had last weeks' edition sent to spam.