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Yep, 6 months to come up with $625,526.
I guess one could say it's a small issue in comparison to the MASSIVE TOXIC FINANCING.
DILUTION is the only option that I see.
I guess the second question I have is, how will they have enough shares to convert for the convertible notes alone, let alone enough shares to dilute to pay off the non-convertible notes??? ALL OF THESE NOTES ARE DUE BY FEB. 2013!
I can't hardly find any info on Fogo, Inc. That says a lot about the company IMO...
I don't think any good financing company will even think about touching SIRG until they clear up some of their TOXIC FINANCING! That is apparent when you look at the fact that their interest rates are increasing.
They were getting notes at 8% interest, and now they are taking notes at 12% & 15% interest.
The length of their notes is also getting shorter. Who takes out a $200K loan for 6 months with no revenue?!?! Not a smart move IMO!
ATTENTION ALL
SIRG TOXIC FINANCING:
Notes Coming Due by Feb. 2013:
The Company entered into a Convertible Promissory Note with Tangiers on October 14, 2011 in the amount of $31,500. The note has an interest rate of 10% with the maturity date of July 14, 2012. The Company has renegotiated the terms of the note. The new terms require the Company tomake two payments of $18,750, which one payment has been satisfied, and issue 3,000,000 shares of common stock to Tangiers. Outstanding Balance: $18,750
The Company entered into a Convertible Promissory Note with Asher Enterprises Inc. on January 13, 2012 in the amount of $37,500. The note has an interest rate of 8% with the maturity date of January 7, 2013. Outstanding Balance: $38,922
The Company entered into a Convertible Promissory Note with Asher Enterprises Inc. on February 29, 2012 in the amount of $30,000. The note has an interest rate of 8% with the maturity date of February 23, 2013. Outstanding Balance: $30,802
The Company entered into a Promissory Note with Grand View Ventures on February 16, 2012 in the amount of $190,000. The note has an interest rate of 15% with the maturity date of February 16, 2013. Outstanding Balance: $200,541
The Company entered into a Promissory Note with Grand View Ventures on May 3, 2012 in the amount of $133,000. The note has an interest rate of 15% with the maturity date of November 1, 2012.
(On May 3, 2012 the Company issued Grand View Ventures, LLC 6,666,666 shares of the Company’s Common Stock in consideration for $33,3333. A convertible promissory note in the amount of $133,333 was also executed. The note has an interest rate of 8% with the maturity date of November 1, 2012.) Outstanding Balance: $136,511
The Company entered into a Promissory Note with Fogo, Inc. on July 31, 2012 in the amount of $200,000. The note has an interest rate of 12% with the maturity date of January 27, 2013. In consideration of the Promissory Note, Fogo, Inc also received Warrants to purchase 1,000,000 shares of common stock at an exercise price of $0.03 per share. Outstanding Balance: $200,000
The holder of shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of the Convertible Promissory Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, to convert all or any part of the outstanding and unpaid principal amount of this Convertible Note into shares of the Company’s Common Stock at a conversion price representing a discount rate of 42% of the then going Market Price which shall be defined as the average of the lowest three (3) Trading Prices for the Company’s Common Stock during the ten (10) Trading Day period ending one Trading Day prior to the date the Conversion Notice is sent by the holder of this Convertible Note to the Company.
During the quarter ended June 30, 2012 the Company issued Asher Enterprises during a total of 18,278,943 shares of the Company Common stock. The stock was issued in exchange for the conversion of note payable issued in 2011. The conversions were transacted three (3) times during the quarter as per terms of the agreement.
The last paragraph on Page 40 of the Q2 filing. Notice that it only says note payable? That is because it was only a single note that was converted.
During the quarter ended June 30, 2012 the Company issued Asher Enterprises during a total of 18,278,943 shares of the Company Common stock. The stock was issued in exchange for the conversion of note payable issued in 2011. The conversions were transacted three (3) times during the quarter as per terms of the agreement.
INCORRECT!
Asher notes have been retired and not dumped
All I'm getting at is they paid 0.001 PPS for the 18M shares they received, and the info I have provided shows just that.
Three nice EOD Paints! 10,000 shares each... At least we know that SIRG has three devoted investors.
Please look closely at the March 31st Q1, and you will see that the only note out of those three that had not been paid off by that time was the one from August 30, 2011. The amount still owed for that note was $18,759. It is located under NOTE 6 on page 13 of the March 31st filings. Link provided below...
Perhaps they wanted to look like they had really cleaned up their TOXIC FINANCING, when in fact, they only paid off $18,759 of Asher debt!
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8681055
I bet they never see a dime of that money, just like last time!
Let's look at it step by step...
SIRG only paid off one Asher note that had a balance of ~$18,759 as of March 31st, 2012. For that single note they received 18,278,943 shares. The remainder of the Asher notes have not been paid or converted!
18,278,943 shares / $18,759 = 0.0010 PPS
They can dilute all the way to 0.001 and still make a profit! That is what makes this type of financing TOXIC!
Remaining Asher Notes Coming Due:
The Company entered into a Convertible Promissory Note with Asher Enterprises Inc. on January 13, 2012 in the amount of $37,500. The note has an interest rate of 8% with the maturity date of January 7, 2013. As of June 30th $38,922
The Company entered into a Convertible Promissory Note with Asher Enterprises Inc. on February 29, 2012 in the amount of $30,000. The note has an interest rate of 8% with the maturity date of February 23, 2013. As of June 30th $30,802
Later in the filing it states that that note is actually a convertible note. They will likely pay it in the same manner that they pay all convertible notes, with DILUTION!
On May 3, 2012 the Company issued Grand View Ventures, LLC 6,666,666 shares of the Company’s Common Stock in consideration for
$33,3333. A convertible promissory note in the amount of $133,333 was also executed. The note has an interest rate of 8% with the maturity date of November 1, 2012.
Does anyone have any additional info on Fogo, Inc.???
This 6 month $200,000 note has a 12% interest rate and is due on Jan 27th, 2013. How will this be paid with no revenue?
The Company entered into a Promissory Note with Fogo, Inc. on July 31, 2012 in the amount of $200,000. The note has an interest rate of 12% with the maturity date of January 27, 2013. In consideration of the Promissory Note, Fogo, Inc also received Warrants to purchase 1,000,000 shares of common stock at an exercise price of $0.03 per share.
That would indeed be awesome!!! The shares are cheap right now IMO!
There have been no lies on my part with regards to the TOXIC FINANCING that is occurring! All of the information is readily available in the company filings!
FACT: These three notes can be converted any day now! They can be converted at 42% of the lowest 3 trading prices out of the 10 previous trading days.
Convertible Promissory Note with Asher Enterprises Inc. on January 13, 2012 in the amount of $37,500. The note has an interest rate of 8% with the maturity date of January 7, 2013.
Convertible Promissory Note with Asher Enterprises Inc. on February 29, 2012 in the amount of $30,000. The note has an interest rate of 8% with the maturity date of February 23, 2013.
A convertible promissory note in the amount of $133,333 was also executed. The note has an interest rate of 8% with the maturity date of November 1, 2012.
The Company entered into a Promissory Note with Grand View Ventures. on February 16, 2012 in the amount of $190,000. The note has an interest rate of 8% with the maturity date of February 16, 2013. $191,832
I really don't feel like getting into the TOXIC FINANCING specifics again. If anyone would like to see the current defaulted notes, convertible notes and non-convertible notes coming due, please review the post below. Just remember, it is the terms of the notes that make the financing toxic.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78493485
A board has even been created to try to enhance investor awareness of the terms associated with Asher notes.
http://investorshub.advfn.com/~-ASHER-~-25451/
Have a great night!
Yes, the mountains of toxic financing must be overcome before the molehills of copper can be extracted.
It looks like the person wanting 5.7M shares on the bid realized he would have to slap the ask to get any!
I'm relatively sure it isn't a pump and dump since your post was the first post in 5 days. This is more likely a hidden jewel, like I said before. All of my DD has come back positive for TUFF. They just need to release a few more good PRs to get this beauty really moving!
They are looking at $4,218,829 to $6,741,537 to get the mine operational. I would say those numbers place quite a few hurdles in front of SIRG. If they can overcome their current financial situation and get to the production stage, they very well could make a nice profit. However, it is things like the ~$74K/month in operating costs that keeps digging them deeper and deeper into the toxic financing world.
It would most certainly be nice to put this all behind us!
I think the first thing we will likely see is an A/S increase to 1.5B. Since the BOD already approved the A/S increase the first time, Jan. 2012, they won't have a hard time getting it approved. Surely they can follow the state law the second time around. Lol...
Reasons for the Increase in Authorized Common Stock
The Company has entered into a series of agreements with Asher Enterprises Inc. (the “Asher Agreements”), to provide
working capital for the Company’s operations while the Company raises a higher amount needed to re-open operations at the Chloride
Copper Mine. These agreements were previously disclosed in the Company’s filings with the Securities and Exchange Commission on
April 15, 2011, August 15, 2011and November 16, 2011. The Asher Agreements require, among other things, that the Company
maintain a reserve of authorized but unissued Class A Common Stock (the “Reserve Shares”) in an amount 5-times the number of
shares into which the outstanding debt of the Company to Asher Enterprises is convertible (the “Conversion Shares”). With the recent
share price drop that the Company has experienced, the number of Conversion Shares has increased and the number of required
Reserve Shares increased proportionately. As a result, the number of required Reserve Shares exceeded the number of authorized but
unissued shares of the Company’s Class A Common Stock, and the Company became noncompliant with the contractual requirement.
The increase in the number of authorized but unissued shares of Class A Common Stock will both (i) place the Company back into
compliance with the contractual requirements and (ii) enable the Company to borrow further amounts from Asher Enterprises for short
term working capital to keep the Company operating while efforts continue to raise sufficient funds to re-start mining operations at the
Chloride Copper Mine.
There are several ways for SIRG to settle debt. One of which includes a massive amount of dilution. That is likely the path which SIRG will select considering the BOD already approved an A/S increase to 1.5B in January of this year. However, their operating costs of $74K /month may hinder their ability to ever overcome their current financial situation.
IMO
So, in all actuality J. Rod sold 4,101,400 shares sometime between April 2010 and Dec. 31st 2011.
The fact that Medina only paid $360K for the entire mine originally is also baffling!
Until SIRG gets their current defaulted notes and current outstanding notes under control/ paid off, I don't think any large investor will even come close to touching it. As of March 31st that totaled $1,016,879.
Their current monthly operating cost is $74,666! That really adds up quick!
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8681055
Please be sure to check out the filings as well. Make sure you look at the defaulted notes, current convertible notes and non-convertible notes that are coming due very soon.
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8681055
They are not currently in the Pinks, but they were downgraded to OTC Pink Limited Information briefly. That makes this company look awful bad IMO!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78572104
Excellent Post!!!
I updated the BEST SHOT Entries for the week. Several of these stocks are looking pretty darn good IMO!
The comments about Asher have been taken directly from the SIRG 10-K. Unless, SIRG blatantly lied in their 10-K, the comments are ACCURATE! I suppose the these terms are blatantly false too???
The holder of shall have the right from time to time, and at any time during the period beginning on the date which is
one hundred eighty (180) days following the date of the Convertible Promissory Note and ending on the later of: (i) the
Maturity Date and (ii) the date of payment of the Default Amount, to convert all or any part of the outstanding and
unpaid principal amount of this Convertible Note into shares of the Company’s Common Stock at a conversion price
representing a discount rate of 42% of the then going Market Price which shall be defined as the average of the lowest
three (3) Trading Prices for the Company’s Common Stock during the ten (10) Trading Day period ending one Trading
Day prior to the date the Conversion Notice is sent by the holder of this Convertible Note to the Company.
Then he wouldn't have to write a "Business Capital for Start-Up and Expansion" add like this.
Seeking funding of $2 million. Sierra Resource Group, Inc. is a past producing copper mine in Arizona with existing plant and equipment (retooling 90 days) and permits ( updating 4-6 months)
Really? What about the fact that the SIRG BOD already approved an A/S increase to 1.5B which was only amended due to their noncompliance with state law. Since both the CEO and the CFO hold 500K shares of Series A Preferred which entitles them to 350 votes/share, totaling 350,000,000 VOTES, they will have no problem getting the A/S increase approved next time.
http://quotemedia.10kwizard.com/download.php?ipage=8035402&action=PDF&src=quotemedia&msrc=68a2dcc319463f7fa6367eee2437b37d
Each share of Series A Preferred Stock entitles the holder to 350 votes on all matters submitted to a vote of the shareholders.
Furthermore, the board of directors approved issuance of 500,000 shares of Series A Preferred Stock each to Timothy Benjamin, Chairman, and J. Rod Martin, CEO. The Board of Directors deemed it necessary and in the best interests of this corporation to create this series of preferred stock in order to compensate the company’s chairman and chief executive officer,
IF YOU CAN'T PROVIDE A DOCUMENT THAT STATES THE PPS PAID FOR THE SHARES OWNED, THEN I WILL SIMPLY ASSUME THAT YOU DO NOT HAVE ACCESS TO SUCH INFORMATION, AND THE STATEMENT IS NOT VALID!
I have done plenty of DD to be aware of the fact that he owns 9.7M shares of SIRG. However, the pps at which he acquired them is currently an unknown. If no document can be provided, I will assume the 0.2pps that has been mentioned is nothing but a empty statement.
Considering the fact that he acquired the stock in an Asset Purchase Agreement between him/his personal company and Medina, I doubt information about the pps paid or even the total paid is publicly available.
All of the shares of Common Stock beneficially held by the Reporting Person were acquired in a Asset Purchase Agreement between the Registrant and Medina Property Group, LLc. in April 2010.
Seeing as Medina was established in May 2010 and sold the rights to the mine to SIRG in April of 2010, something just doesn't add up there either. There is something really off here IMO.
I have searched every filing from 2010 through the most recent one, and it simply isn't there! If anyone would care to provide a link to prove me wrong, I would be happy to withdraw this statement.
This is what I can find on the topic.
All of the shares of Common Stock beneficially held by the Reporting Person were acquired in a Asset Purchase Agreement between the Registrant and Medina Property Group, LLc. in April 2010.
The timing seems to fit!