Ian!!! Here is one of the big prob I have had a hard time with, The bullchit claims and PRS,,
'No basis' for claims by mining company
Investors rushed in, now told estimates unfounded
Rami Grunbaum
Editor
Cascade Mountain Mining Co. Inc. caught some investors' attention in mid-July by announcing it owned Washington state mining claims with a "potential dollar value of $1.5 billion."
Its "Mazama Project," said the previously unknown Seattle company, "could produce 2 billion pounds of copper, 150,000 ounces of gold, 750,000 ounces of silver, and 6 million pounds of molybdenum."
Last week, however, the company admitted "it has no basis" for that projection, or for many other statements made during a monthlong publicity spree.
But there was no taking back the heavy stock trading excited by its earlier pronouncements. In a few short weeks, some 89 million shares had changed hands on the OTC Bulletin Board at a total value of approximately $6 million. That amount stands in sharp contrast to the $20,000 that president and CEO Wayne Barrington Daley had paid in June to gain control of the public shell company into which he merged Cascade Mountain Mining.
The trading surge of Cascade Mountain shows that despite tighter regulations and disclosure requirements for penny-stock companies, there is still an active, lucrative business in promoting insubstantial companies whose shares trade for just a few cents. When 12 million or 13 million shares are being sold daily, as Cascade Mountain's were in early August, sellers can make a tidy sum even at 6 cents or 8 cents per share.
Had investors taken a closer look at Cascade Mountain, which only became publicly traded in June, they might have found some other aspects of the company that seem as ephemeral as its billion-dollar projection.
Cascade Mountain had no cash and didn't even have its own bank account as of June 30, according to its first quarterly report to the Securities and Exchange Commission, made in late August. Instead, "All cash flowed through the president of the company's bank account."
Its headquarters is listed as the 42nd floor of Two Union Square, a prominent building in Seattle that houses mutual fund managers, venture capitalists, and the district office of the National Association of Securities Dealers.
But the 42nd floor is occupied by a temporary-office firm called HQ Global Workplaces, whose receptionist said Cascade Mountain has "no physical presence" there. He would not disclose where the company's communications are forwarded.
Cascade Mountain's Web site also appears impressive -- it opens with an animation of a mining car that emerges from a tunnel loaded with gleaming gold. But the site's "corporate profile" page appears borrowed in its entirety from a copyrighted article on the National Mining Association Web site. A spokesman for the Washington, D.C.-based group says there's no record of Cascade Mountain as a member. Likewise, Cascade Mountain's "values" statement, which describes "a unique, two-tiered management structure," seems to follow word for word the credo of an unrelated investment company in Pittsburgh.
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http://seattle.bizjournals.com/seattle/stories/2003/09/08/story3.html
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