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7/15/17

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

...in reverse order:

Third Place: "Cordoba Minerals (CDB.v) should release hole ACD-063 immediately". News on this in the Weekly tomorrow Sunday, subbers.

Second Place: "The anonymous seller of Cannabis Wheaton (CBW.v)". Graham Saunders didn't like this post. Shine a light.

 
First Place: "Novo Resources (NVO.v): "That's disgusting!"". Previously 16 views of the Youtube, now 3,332. NVO up 26% since this post went live.

7/14/17

TMAC Resources (TMR.to) and the First Law of Mining NRs

I was kind of surprised to see TMAC Resources (TMR.to) down just 6% on low-ish volume today on the back on this NR, the issue looks pretty serious especially if we take IKN's First Law Of News Releases* into consideration. Then again, this is an extremely supported stock and story in the sell side community and...


...the firms have a vested interested in not seeing the stock break down. The 2q17 regulatory filings will be interesting, though.

*which is this:
"The IKN First Law of Mining News Releases: Considering that anything contained in a mining news release is presented in the best possible way for the company in question, any piece of information contained in a NR that comes across in any way negative means the real news and/or events behind it must be very, very bad indeed."

The Friday OT: Frank Zappa; Watermelon in Easter Hay

From a 1988 live show. Zappa was on a different plane of consciousness to the rest of us, it shows best when he played guitar. I always get mixed feelings when listening to him, the appreciation of his work mixed with the absolute certainty I don't really understand what the hell is going on.



Youtube here.

Ollanta Humala...

...and his wife Nadine spent the night in the court holding cells. The ex-Prex is about to be transferred to the same jail that houses Alberto Fujimori. As for his wife, she's off to the women only prison in the North of the city.

For the record, the Humala couple are being done ostensibly for the U$3m bribe received from Odebrecht, as reported by IKN in this post dated January 15th.

7/13/17

Looks like Ollanta Humala is going to spend the night in jail

We're about an hour into the three hour judicial ruling on whether ex-President of Peru Ollanta Humala accepted bribes from Odebrecht. So far the ruling is going very badly for him and his wife.

There are four elements needed to decide whether they will be taken into pre-trial custody, and the first two have gone against them. If the other two are ruled against them as well, they'll need to pack pyjamas because there are new beds waiting for them this evening.

Expect an update on this post later.

UPDATE: The judge imposes "preventative prison" on both. Go to jail, go directly to jail, do not pass go, do not collect three million dollars in bribes from Brazialian construction companies.

In The IKN Weekly this weekend...

...and after meeting with its management today for a long chat, we answer the key question regarding Red Eagle Mining (R.to): Buy, sell or hold? }

Edition out Sunday evening.

The Guardian does Tahoe Resources (TAHO) (THO.to)

Mining company love it when mainstream media start looking at their operations, right? Right? But of all the report, the list and catalogue of corporate abuse, this is by far my favourite quote:

“There are a small number of vocal opponents who foment intimidation and violence in the region. This has led to a number of violent incidents which sometimes creates a general environment of impunity that violent activists foment,” said spokeswoman Edie Hofmeister.

Yes indeed ladies and gentlemen, Edie Hofmeister* really is this freakin stupid. Full report here.

UPDATE: And then there's this today from Bloomie:

Tahoe Resources Inc., whose flagship Guatemalan mine has been suspended, is taking steps to cut costs, including possibly slowing an expansion of a project in Peru and trimming exploration.
The Reno, Nevada-based company may also discuss halting its dividend at an August board meeting and might slow down the payment of bills, Chief Executive Officer Ron Clayton said  Thursday in a telephone interview.
“We certainly are already cutting back on things that are very discretionary,” Clayton said, adding the company will decide in the next two to three weeks what else it can save on. “Our gold mines, if we clip back a little bit on our exploration and capital spending, can generate cash.”

Whole thing here.

*Who got her job at TAHO because she's the tennis partner of Ferrari Kev's wife.

Cordoba Minerals (CDB.v): Right to reply

After posting the mail sent by Robert W. Allen regarding Cordoba Minerals (CDB.v) yesterday, as well as adding a second post with my personal opinion on the hole 63 delay, I received the following from CDB yesterday. It's a mail that CDB CEO Mario Stifano sent to Robert Allen as a reply to his complaints. I've been given permission by Stifano to reproduce it here and that's good for me, right of reply is something IKN has always appreciated. Read on:

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Bob,

On behalf of Cordoba, its management and shareholders, it is necessary that I respond to your patently false and libelous statements. As CEO of Cordoba and one of Cordoba’s largest individual shareholders, I must ensure that all shareholders understand the transaction and do not rely on the libelous claims you are making which are based on an inaccurate set of facts.

I will set the record straight in this response.

The key point for all shareholders is that this transaction is neutral with respect to HPX’s current San Matias ownership, and is not at all negative to shareholders as you are stating. We have estimated that if the sole focus of the joint venture was to complete a feasibility study for the Alacran Deposit, it could be completed for approximately C$10 million. Under the previous joint venture structure, Cordoba’s existing shareholders would retain a 35% interest in San Matias upon HPX delivering a feasibility study. The transaction and concurrent financing will allow existing Cordoba shareholders to retain an effective 43% interest in San Matias – approximately 20% more than the ownership under the previous joint venture structure.  In fact, if Cordoba had raised over USD$30 million it would still have a greater than 35% interest in San Matias. 

I have to state that the details of the HPX joint venture have been made by Cordoba on numerous occasions. There is nothing new, or undisclosed, in what I am stating.

Cordoba entered into the joint venture with HPX in 2015. This has delivered significant shareholder value to Cordoba as HPX spent over $30 million on the project in less than 3 years, even though the option agreement only required HPX to earn a 51% interest at San Matias by spending $19 million over 7 years.  HPX has therefore been extremely supportive of the San Matias project, and this has been reflected in share price growth that benefits all shareholders.

The joint venture does not, contrary to your assertion, require that HPX carry the San Matias project to feasibility. HPX does not have a sole funding commitment to feasibility. HPX holds an option, and in fact HPX can require Cordoba to fund its 49% interest in the project going forward.  If Cordoba had to raise half of the cost of any exploration program, existing Cordoba shareholders would indirectly be diluted down from their current 49% economic interest in San Matias. As a result, your concerns about future dilution are unfounded. HPX has the right under the transaction, which is the same right that it currently holds, to maintain its pro-rata ownership interest in Cordoba.  That has not changed.

HPX also currently owns approximately 36% of the Cordoba common shares. HPX will exchange its current approximately 69% controlling economic interest in San Matias (consisting of a 51% direct stake in San Matias and its 36% direct share ownership interest in Cordoba) for an approximate 67% share ownership interest in Cordoba following completion of the concurrent financing.  HPX is not increasing its economic benefit in San Matias as a result of the transaction. Again, this transaction is neutral to HPX.

I will also correct your statements on Cordoba’s drilling results. Simply put, there is no material fact or change that has not been publicly disclosed and therefore your claim of illegal insider dealing has no basis in fact or law. Cordoba issued drill results on May 17, 2017 and not before PDAC as you have claimed.  Cordoba will be issuing additional drill results when all the assays are finalized for the remaining holes at Alacran and compiled and appropriate for public dissemination.  

Finally, I will address your governance assertions and allegations of management impropriety. The independent directors on the Board have positively endorsed the transaction as it is in the best interest of shareholders.  Haywood has also provided a positive fairness opinion on its terms.  Cordoba has a very strong independent Board.  Our independent board members include Tony Makuch, who is CEO of Kirkland Lake Gold, Ignacio Rosado who is CEO of Volcan, David Reading former CEO of European Goldfields and Bill Orchow former CEO of Kennecott USA.  These are highly experienced Board members, independent of HPX, and each of whom recommended that the shareholders approve the transaction. 

In addition, the renowned governance advisory firm, International Shareholder Services, which makes recommendations for institutional funds, has come out in support of the transaction. If it had concerns, it would have stated so.

As well, rather than receiving significant payouts in the transaction, Cordoba management has agreed to waive their change of control provisions under their contracts, which would otherwise have been triggered as part of the transaction. We as management are as committed as the Board and HPX to delivering significant shareholder value, and by waiving our rights, have taken steps to put the interests of the Company ahead of our own. That is proper governance.

Why are all of these positive recommendations being made?

It is because this is a transaction that stands up to scrutiny when examined in a factually accurate manner as it is an independently reviewed transaction that is in the best interests of shareholders.

On the contrary, your request that shareholders vote against the transaction is not founded in fact or any objective independent assessment, and is more likely based on your personal grudges against Cordoba for entering into a joint venture you opposed, aggressively fought against and failed.   

Cordoba’s partnership with HPX has delivered significant shareholder value, while you decided to exit your shares at the lowest point of Cordoba’s share price in 2015.  (The recipients of your email should know that you sold the vast majority of your Cordoba shares in 2015 at the lowest point in the market and (amongst other things) as a result, you have not had board representation since 2015.)  Fortunately, we have strong supportive shareholders who recognize the potential of our San Matias Copper Gold project and the benefit of having HPX as our largest shareholder.

I am also attaching a letter that I sent to shareholders explaining the benefits of the transaction.

Regards,

Mario Stifano

7/12/17

Cordoba Minerals (CDB.v) should release hole ACD-063 immediately

This morning we got to see what Bob Allen (Bullet Group) thinks about the proposed deal between CDB and HPX (spoiler: not a lot). The mail, which was circulated to his group of friends and colleagues, made it to IKN even though he got a basic fact wrong because it makes one excellent point.

1) Wrong: He said we haven't had an assay result since PDAC.
2) Right: An assay is way waaay overdue and it looks very suspicious in the eyes of your humble scribe.

In this NR dated May 17th CDB announced to the world a bunch of assay results for its main Alacran target that didn't impress the market (see chart below). They obviously knew the numbers wouldn't wow anybody because a little further down the NR they wrote this:
"Our geological understanding of the multiple mineralizing events and structural interpretation at Alacran is improving with visible gold recently intersected in drill hole ACD063, with assays pending."
Oooh! Ooooh! Visible Gold! And for those that recall, it was a hole that hit impressive VG in the same part of Alacran that saw the stock zoom higher in January and February. 


That May 17th NR was exactly eight weeks ago (56 days, count em up). And that's weird because for one thing, there's no way that hole would take 8 weeks to test and for another, at the time that NR came out I asked CDB CEO Stifano when we could expect the assay result and he told me by the end of June latest.

In other words, the delay on releasing this hole's results is total bullshit, obviously connected to this crap-assed deal to buy out HPX Colombia. If it looks like a duck, and quacks like a duck...






This is no small matter. I have no doubt that CDB, under the directive of Robert Friedland (the dude at the very centre of this retail shareholder rip-off), is witholding material information from the market. And even if they're not, the optics on this foot-dragging of an important hole are awful and makes the whole operation look dirty, shady and scammy.

IKN calls on CDB to release the results of ACD-063 immediately. Stop farting us around, the lack of respect for the people who have sponsored your company is disgusting.

Breaking: Lula da Silva convicted of corruption

Lula, ex-Prez of Brazil, just got handed a sentence of 9 1/2 years for corruption. He won't do time while the appeals process continues. Expect a bunch of newswire reports on this one.

Roger Federer is the best tennis player ever

Sport as art.


UPDATE: IKN reminds readers of David Foster Wallace on Roger, the peerless sport essay. Here's how it starts:

Almost anyone who loves tennis and follows the men’s tour on television has, over the last few years, had what might be termed Federer Moments. These are times, as you watch the young Swiss play, when the jaw drops and eyes protrude and sounds are made that bring spouses in from other rooms to see if you’re O.K.
The Moments are more intense if you’ve played enough tennis to understand the impossibility of what you just saw him do. We’ve all got our examples. Here is one. It’s the finals of the 2005 U.S. Open, Federer serving to Andre Agassi early in the fourth set. There’s a medium-long exchange of groundstrokes, one with the distinctive butterfly shape of today’s power-baseline game, Federer and Agassi yanking each other from side to side, each trying to set up the baseline winner...until suddenly Agassi hits a hard heavy cross-court backhand that pulls Federer way out wide to his ad (=left) side, and Federer gets to it but slices the stretch backhand short, a couple feet past the service line, which of course is the sort of thing Agassi dines out on, and as Federer’s scrambling to reverse and get back to center, Agassi’s moving in to take the short ball on the rise, and he smacks it hard right back into the same ad corner, trying to wrong-foot Federer, which in fact he does — Federer’s still near the corner but running toward the centerline, and the ball’s heading to a point behind him now, where he just was, and there’s no time to turn his body around, and Agassi’s following the shot in to the net at an angle from the backhand side...and what Federer now does is somehow instantly reverse thrust and sort of skip backward three or four steps, impossibly fast, to hit a forehand out of his backhand corner, all his weight moving backward, and the forehand is a topspin screamer down the line past Agassi at net, who lunges for it but the ball’s past him, and it flies straight down the sideline and lands exactly in the deuce corner of Agassi’s side, a winner — Federer’s still dancing backward as it lands. And there’s that familiar little second of shocked silence from the New York crowd before it erupts, and John McEnroe with his color man’s headset on TV says (mostly to himself, it sounds like), “How do you hit a winner from that position?” And he’s right: given Agassi’s position and world-class quickness, Federer had to send that ball down a two-inch pipe of space in order to pass him, which he did, moving backwards, with no setup time and none of his weight behind the shot. It was impossible. It was like something out of “The Matrix.” I don’t know what-all sounds were involved, but my spouse says she hurried in and there was popcorn all over the couch and I was down on one knee and my eyeballs looked like novelty-shop eyeballs.
Anyway, that’s one example of a Federer Moment, and that was merely on TV — and the truth is that TV tennis is to live tennis pretty much as video porn is to the felt reality of human love.

A word on Novo Resources (NVO.v)

The combo of...

1) The video posted to Youtube yesterday (as seen in this IKN post last night)
2) The trading pattern in NVO.v
3) The trading halt and news release this morning
4) The 30% price increase in the last two days

...is the most blatant example of selective disclosure and illegal trading you could possibly imagine. It's long past time that Canadian regulatory authorities clamped down on this type of bullshit. A heavy fine for NVO should be the absolute minimum that happens.


Wesdome 2q17 production numbers

Here's the NR, here's the chart:



Bottom line: Eagle River's 10,597oz was lower than expected, mainly due to low throughput. Mishi's 1,932oz took up a bit of the slack. Overall, the 12,529oz in the quarter was below the 2017 annual guidance (52k to 58k)  on a straight line basis, but the first half of 2017 looks okay thanks to that blowout Q1.


Chart of the day is...

...zinc, 12 months:



Subbers: Check IKN Weekly editions 419, 420 and 421 and the "Think Zinc" pieces.




What Robert Allen thinks of the Cordoba Minerals (CDB.v) deal with HPX

Robert Allen of the Bullet Group etc etc. It's fair to say that Allen is The Man when it comes to mining exploration in Colombia. Here's what he wrote to his circle of influence last night:

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Friends, it's shades of black.

You may have recently received a mailing from Córdoba Minerals concerning a deal between HPX and Córdoba.

Córdoba and HPX are taking "Inside Dealings" to new levels that hasn't been seen since the BreX salting scam. It's criminal and an extremely bad deal for Córdoba shareholders.

It's a sad day when Cordoba's management and HPX withholds exploration results from the company's public shareholders, so that the Córdoba Directors & the HPX team hides all the cards on drill and exploration results and can take over the company using inside knowledge.

Córdoba has not released drilling or other exploration results to its minority shareholders or the public since before the PDAC in Toronto earlier this year.   Exploration on Córdoba's property is led by Robert Friedland's HPX. All results are known immediately by Mr Friedland's HPX company, but not other shareholders. This  deal clearly suggest illegal insider dealing and calls for a criminal investigation into Córdoba's CEO and Friedland-company. The Ontario Securities Commission should not let this pass and should investigate.

I encourage you to vote "no" on the Córdoba proposal as well as all the directors, who maybe also complicit in this illegal deal. I plan to contact the Ontario Securities Commission the TSXV and encourage you to do the same.

Robert W. Allen

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7/11/17

Novo Resources (NVO.v): "That's disgusting!"

A most interesting Youtube, and only 16 views when IKN got sent to look. Something tells me there are going to be a lot more views on this video soon. A lot.





This would, of course, also explain this:



Thank you reader BR for the heads up. Youtube here. Disclosure; no position, but much respect for head Novo guy QH.

UPDATE: And then there's this. Screenshot:


Holy crap.

UPDATE 2: We now hear NVO has a NR out tomorrow Wednesday morning.


The anonymous seller of Cannabis Wheaton (CBW.v)

Here's an interesting snippet: IKN sources tonight reveal that the major seller of stock in the last two days is a man named Graham Saunders. The interesting bit is that Mr. Saunders has been using House 1, i.e. "Anonymous", to dump his stock. Why interesting? Graham Saunders is a partner at House 33, Canaccord. I mean, if he didn't have something underhand and shady to hide he would be cashing out in the millions via 33, wouldn't he?

Alset

Scam is as scam does.

Cannabis Wheaton (CBW.v) down 17% so far this week

And there's more downside to come from this scam.

UPDATE: Oops, make that 22%.

The battery must have died on Laura Stein's cellphone

Camino Minerals (COR.v) comes out with drill news and does just 1,100 share volume in the first hour of trading. You're slipping, pumpteam.

7/10/17

Cannabis Wheaton (CBW.v): An interesting seven days in store (from IKN425)

From IKN 425, out last night. CBW is already down 10% today and at the lowest price since late March, when this bullshit scam pump began.


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Cannabis Wheaton (CBW.v): An interesting seven days in store
I’ve written a lot about Cannabis Wheaton (CBW.v) on the blog, due at first to its extremely shady structural background and then following up as new and dirty details came to light (from very well placed sources, I might add). However, this is the first time CBW has had a mention here, the more serious side of what I get up to, because CBW has a couple of dates in its diary which may well affect the stock price considerably and there’s a clear trade opportunity showing now. Three things to consider:

1) On March 14th, CBW (at that point still called Knightswood Financial Corp) closed a financing by selling 18,272,773 units at 5.5c each, raising gross proceeds of $1,005,003. One unit was one share plus a full warrant priced at 7c. That placement comes out of escrow tomorrow, July 10th.

2) Then on March 21st CBW closed a second tranche of the same placement run, sell 7,237,883 units at the same terms. This second tranche comes out of escrow on July 17th.

3) But then the twist came, as on March 24th these two-faced rip-off merchants ran a three-for-one forward split of company shares, which means every share and warrant they sold magically becomes three. Therefore in the next seven days, starting tomorrow Monday, 76,531,968 shares and 76,531,968 warrants (7c strike, now 2.33c) of CBW.v become free trading in a stock that’s been artificially held up and even after selling pressure last week closed at 87c. In other words, it’s payola time for the people at the centre of this scam.

Assuming the debentures and special warrants sold this month at $1.00 apiece are converted (they won’t be) CBW now has around 330m shares out. Just under half of those shares were under lock and key due to the March financings, they’re about to hit the market. In this blog post dated June 13th (19) I did a bit of basic balance sheet work and ballparked a share price of 50c for CBW if they managed to close the placement and get that $50m on board, which they have done. I think that’s still a pretty reasonable prognostic so if you’re looking for a short candidate in this market, look no further.



A Rye Patch (RPM.v) question

In this NR dated June 2nd, Rye Patch Gold (RPM.v) told us its April 2017 production was 485 oz

In this NR dated today, RPM tells us its April 2017 production was 1,037 oz.

Which news release is the lie, Howald?

And before you say anything, if "gold poured" is not the same as "production", why is the May number exactly the same for both NRs? My stars, if there's one thing I hate about juniors, it's when they retroactively bullshit on their numbers.

UPDATE: A. Reader enlightens:
Regarding your post today concerning Rye Patch's gold production for April 2017, the May 1st press release indicates that the gold pour in April included 485 ounces from the new South Heap Leach Pad, and 602 ounces from "residual leaching" of the old Florida Canyon and Standard Gold mines. This gives the total of 1,087 ounces seen in today's press release. 

However, this does lead me to wonder whether there is any of this "residual leaching" included in the production totals for the subsequent months.

Fair enough.

7/9/17

The IKN Weekly, out now




IKN425 has just been sent to subscribers. Another 15k words and 29 pages to chew on, with features on SAND, TAHO, RPM.v and plenty of other stuff besides. Guaranteed to break the ice at parties, a veritable cornucopia of delights.