Here's some good information:
"I think yesterday’s PR by FFGO and NMGL’s 8-K pretty much finishes off Phase 1 for the sale of Bouse and SC. FFGO’s % of the 2 properties is now safely tucked into a fully-reporting vehicle NMGL which operates as an “institutional mining fund”. The preferred shares are firmly tucked into a private company Western Diversified. My biggest concern all along was getting this step done before 9/29/10. After that date FINRA has the power to halt any “corporate action” (like a dividend distribution) for due cause. FFGO’s not reporting for 5 years clearly would have qualified as due cause. Share dividends like this one are more frowned upon by the SROs and regulators than cash dividends obviously. The market makers naked short the shares of FFGO as well as its 3 predecessors are dues paying “members” of FINRA. Over the last 30 years allegedly a fair percentage of the corporations victimized by naked short selling with a chance of turning the tables on abusive short sellers via any one of a variety of “corporate actions” mysteriously either got delisted or had their 12-g exemptions from registration revoked.
NMGL’s 8-K today pretty much sealed the deal on this phase as the preferred shares were indeed sent to “Western Diversified” which is the wholly owned subsidiary of FFGO that held the mining assets. In order to safely effect the sale of these 2 assets you not only need to get them into a fully reporting entity you also need to coalesce 100% ownership of the assets into a vehicle like NMGL so that the end purchasers can pluck 100% of the assets from them. Juan Jose Quijano had to do the same thing with Medinah’s various parcels of mining claims before he could attract the attention of the majors. I would think the next shoe to drop would be to get Searchlight and the other co-owners to sign off on the deal and be sent their preferred shares representing their ownership percentages. Recall that FFGO owned 23% of one property and 46% of the other.
FFGO was not exactly the “darling” of the SROs and thee regulators. After wisely “going dark” (non-reporting) in 2005 and fighting the shorts for 2 years on March 26 of 2007 they suddenly announced that they had increased their authorized share count to 5 trillion shares. Since the management teams of most pink sheet “presumed scams” usually end up distributing shares (often to themselves) up to their authorized limit the shorts sensing a massive pump and dump immediately attacked and drove the share price down by 99%. Soon thereafter management made a press release stating that they just bought back half of their 60 billion shares at super-cheap levels and they reset the authorized to 75 billion. OOPS! The naked short sellers weren’t amused and the gloves have been off ever since. About 30 bashers have been going at it 24/7 ever since constantly insisting that there is no naked short position and that their nonstop efforts are being made while acting as “shareholder advocates” trying to save investors from being duped. Recall that in August of 2008 the DTCC opened up its subsidiary “Euro CCP” and the level of delivery failures mysteriously fell off of a cliff. Since then the FINRA “Threshold list” and the Rule 3210 “Threshold list” for nonreporting issuers have been looked upon as pretty much an intentionally misrepresentative joke.
Meanwhile the next door neighbor to the north of FFGO’s S. Copperstone property, American Bonanza, recently announced that they’re about to go into production underneath their famous “Copperstone Mine’s” open pit. The westerly neighbor of the Bouse property, Tuffnell, this week announced spectacular drill results and their successful finding of the “detachment fault” that FFGO management was hoping was underlying their Little Butte Mine’s historical open pit. Dr. Wayne Colliston’s suspicion was that there was indeed a “detachment fault” underlying Tuffnell’s and FFGO’s properties in the Little Butte Mine area. If so he was hopeful that FFGO’s property might instead of being perhaps a 1 million ounce gold resource might become more of the 10 million ounce detachment fault resource associated with the Mesquite Mine which is also in the same Walker Lane belt that Tuffnell and FFGO cohabitate. The Copperstone Mine that abuts FFGO’s S. Copperstone property is indeed a detachment fault type of deposit and is the largest discovery in Arizona over the last 50 years.
It seems to be fairly clear that Ronnie Lowenthal of South African brokerage industry fame being the principle of Sloan Investment, FFGO’s largest shareholder, and the administrator of the NMGL mining fund is now the one to keep an eye on. He is the mentor of billionaire Stephen Lumb. Being that FFGO’s market cap is a lowly $7.5 million while the stock is trading at $0.0001 they have lost the option to raise money by selling shares (too dilutive) and develop the property themselves. Instead they have “inventoried” the property and appear to be rooting for their next door neighbors to continue to hit pay dirt which has worked out quite nicely so far.
Those employees of the parties that are naked short FFGO are going to make your lives as miserable and as stressful as they possibly can if you follow the various FFGO Internet discussion boards. Their job is to spread “FUD” (fear, uncertainty and doubt) in order to induce you to sell the shares that you own and refrain from buying any more. This way should the cash dividend come to fruition their employers will have to match that many fewer generous cash dividends. Be forewarned. This is still a very complex chess game being played and not for widows and orphans. When the bashers move on to more verdant pastures then and only then be concerned about the validity of the cash dividend.
The updated Q and A was written by some very bright lawyers intimately knowledgeable about liability issues associated with misleading potential investors by making unrealistic promises. Keep that in mind when you’re trying to understand why a certain phraseology was used. The amount and the difficulty of the work these people have gone to in order to effect this dividend distribution are beyond comprehension. It’s a shame of the level of corruption in our markets that U.S. mom and pop investors trying to make a nickel on a development stage corporate investment need to be put through these extremely damaging physical and psychological stresses and strains just so that a minority on Wall Street can route the funds of less financially sophisticated investors into their own wallets."
