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The whole point of the podcast is to drum up investors. No - not private placements specifically - which is why it's legal for him to do it.
My point of contention is why would Mexus even bring on someone who has previously been in trouble with the SEC for reasons related to finding investors and then put him out in the public eye to drum up investors (even if it is only targeting common shareholders)?
Were there no financial consultants with a clean history available?
The more likely scenario is any financial consultant that cares about their reputation wouldn't touch the company.
Notice a trend? Geologist with questionable reputations, JV's with questionable reputations, financial consultants with questionable reputations...
But let's pretend everything is hunky dory and there is nothing to be concerned about here. I'm sure Mexus is following the strict letter of the law and not doing anything questionable just as they have done - oh say never - in the past.
I'll agree that the Mexus/Berk agreement is likely arranged so that it is not in violation of any SEC/legal issues. But don't be naive to the purpose of the relationship. Berk is being paid to help Mexus find money. That's his "expertise". And he brings a shady history with him.
Why is Berk's expertise needed? Did the Oracle with deep pockets and several other successful mine start-ups finally cut off Paul? If so, that should be a huge hint to what lies ahead for Mexus.
Everything about this screams pump. It isn't that hard to understand.
In this interview I learned mining cost in Mexico are half of those in the U.S.
Oh.... and Mexus is looking to buy more property in Nevada.
For a guy who is supposedly not legally able to be drumming up investors, it sure sounded like that's what he was doing and what he stated he was hired by Mexus to do.
True. But there is no way they can dilute another 9 billion shares without taking this to no bid. I have my doubts they can get to a 1 billion OS without reaching no bid. So the 1:10,000 reverse split will happen prior to maxing out to 10 billion OS.
To Bids point, after the 1:10,000 reverse split why would a 10 billion AS amount still be needed? If the intentions are to increase shareholder value and maintain a stock price acceptable for Nasdaq trading, lowering the AS would be a logical approach.
The answer that makes the most sense for keeping AS at 10 billion is because the company intends to repeat its cycle of diluting and reverse splitting again.
Along with obtaining a Nasdaq worthy share price, the reverse split is about eliminating toxic debt. The low number of shares only makes it that much easier for Seamus to own controlling interest or go completely private.
The more noteworthy point isn't that the stock is up or down 45%, but that $15.00 worth of trades can swing the price that much.
If their plan is to use the split to uplist to Nasdaq, they will need the full 1:10,000 to get share price to the $7.00 - $8.00 range needed to qualify for listing.
This reverse split is happening and every indication points towards a 1:10,000 ratio.
I just noticed that the most recent PR left out any details on the $105,000 loan repayment.
How did this get paid back? Mexus only had $1,100 of cash on hand according to the last 10-Q filed in November.
Where did the cash come from? I guess it's possible it sold stock to cover, but it doesn't seem like there's been enough volume to dilute the over 13 million shares needed to generate that much money.
I would have liked to have seen an 8-k filed with an explanation on how the funds to pay off the loan were obtained.
Wonder if Bogard &/or Berk had a role in obtaining the funding to repay the loan commitment?
2 Questions & 2 Observations.
Questions
1. Who will be doing the heap leach process? Mexus has no employees, only consultants.
2. How has the gold extraction issues been addressed/resolved? Allegedly the issue was never leaching (previous assays done during heap leaching were showing 4 grams per ton Au). The issue was capturing gold and silver from the pregnant solution.
Observations
1. "Mexus will begin preparing the heap leach in the near term." This is a typical Mexus vague statement meant to portray to investors that action is happening that isn't really happening. Heap leaching isn't starting, they are only beginning to prepare to maybe think about heap leaching...someday. What specifically does "begin preparing" entail.
2. Circling back to a point I raised in my 2nd question, the latest PR states an average of 1.3 g/t Au. Previous PR (like the one 11/20/17) stated 12 - 14 g/t Au. The values identified in drilling the "bonanza grade" quartz structure is significantly lower than the amounts the company was portraying in previous PRs (approximately 1/10th of the amount of previous assay claims)
I don't see anything in the PR to convince me things are going to get better.
I'm still having a hard time with justifying holding. Especially if you have 1 million or less shares currently. If a 1:10,000 R/S is imposed, at 1 million shares you'd only have 100 shares post split.
Sure there are lots assets behind those shares, but the company will dilute again post R/S - Remember the company is generating revenue, but not at a profit.
If someone can provide a probable path that would allow someone with fewer than 100,000 shares I'm all ears. Otherwise, I'm selling before I get tagged with another $30.00+ fee from my brokerage account on less than $10 worth of shares.
That brings up a good question.
How are these guys getting compensated? Mexus doesn't have very much cash (if any).
Ok. So let's take the PR at face value.
We now know the company entered into a financial consulting agreement with Stanley Berk JD.
What is the significance of the relationship and why is it important for an investor to know this occurred? (in other words why make the announcement?)
So Mexus decided entering into a financial consulting agreement with a 3rd party is worthy of a PR, but cost sharing expenses potentially in the 6 figure range (or higher) with a JV that was purportedly paying all operational expenses was not worthy of a PR?
This company has strange standards for what it considers news worthy... or perhaps there is another motive behind the PR?
I don't disagree with the eventual end result you're predicting. The question is will it occur before, after, with, our without a 1:10,000 reverse split.
The only reason you buy in now is you think the R/S will be cancelled, or it will run hard prior to the R/S.
If you buy in now and nothing happens until after the R/S you'll have a really tough time making back any serious money.
I wouldn't go that far. 800,000 shares at $.005 per share is $4,000. Not a significant dollar amount by any means.
Legitimate positive drilling news could entice some investors to come off of the sidelines. $5,000 -$10,000 of new money could move price up just as easily.
LOL. I'm sure it was someone who so desperately wanted in they spent $7.00 - $9.00 in brokerage fees to buy less than $6.00 of stock.
That logic sounds about right for any investor bullish on Mexus.
1,068 shares traded so far today. Who in the world would sell (and/or buy) only $5.88 worth of shares?
Gold levels still seem disappointing given the previous levels the company promoted being in the heap leach pad.
The real doozy in the PR is this line.
Being a good trader has nothing to do with being able to play that kind of upswing. There was no rhyme or reason for the bump other than an MM trying to suck in some people. There is no way to predict and time that kind of market - no matter how good you are.
C'mon.... a company that is already struggling with credibility goes out and hires a PR company that has an even worse track record of maintaining credibility and your issue is a poster moving the goal posts?
In order for stock price to move up, we need legitimate outside investors (who have not been previously involved with Mexus) to buy shares. Using a PR firm known for questionable antics only chases away those investors.
Now, even if the drill results are legitimately positive, the company has given more reason for people to doubt that.
This is a dumb move for Mexus.
Where has this been announced about Baclet doing Mexus IR? I don't see anything from the company.
Do you have a copy of the signed and counter-signed agreement? :)
So were all 75 samples analyzed or just received? Are there 75 samples in a batch? How many total batches are there?
Are the results stated in the PR based on all 75 samples or just 1 (or some other amount)?
What is a batch? Since there are 9 holes does that mean each hole has 8 or 9 batches?
Received by who? Does this mean ALS received the "batches" from Major Drilling or did Mexus receive the results of some or all of the "batches" from ALS?
Another example of how the company is using wording to get investors to read into and interpret something that isn't accurate. And posters eat it up and portray it as some kind of factual proof of accomplishment.
So far, there hasn't been anything presented that can be verified by an independent 3rd party. Which was supposedly the whole point of this endeavor.
Whar can one find this completed "first assay" report from ALS Chemex?
All I can find is a Mexus PR claiming results on 3 holes that can't be verified?
Meh... I don't read into the use of pronouns too much. I've likely used the term "We" when it comes to Mexus. I own shares and feel like I'm "in it" with the company. It's success contributes to my investment success, it's failures contributes to my investment failure.
My bigger issue is the lack of business common sense being portrayed. Some posters on these boards like to brag about their business knowledge and previous success. But as is made clear in the San Felix scenario they are trying to sell everyone a line a story that makes no business sense. (need I also mention the attempted misuse of the business term "LOI" trying to backtrack by claiming it commonly means "Lots of Interest" when anyone who has an ounce of business knowledge understands the term to mean "Letter of Intent" - a term which can have legal business implications)
So these posters were either incredibly lucky (and naive) in previous endeavors or they are knowingly trying to sell a line of crap to investors.
Nope. Not buying that line of B.S. No way a company with no other income source sells an operating mine generating $500,000 every 12 - 14 days (sold on contract no less) and places the company's future solely on an unproven, under researched, undeveloped claim.
Even if everyone thought Elana was the more valuable claim they wouldn't give up a source of revenue for a "contract purchase". The company would have needed (and still needs) cash.
San Felix was never generating $500,000 every 12-14 days. Two factual reasons that support that theory;
1. The income never hit the financials (even if it had been embezzled the company would need to show the income and then write-off the loss.)
2. There would be no need to sell a revenue generating entity. If San Felix was generating that kind of cash there would be no reason for an "either/or" scenario between Elana and Felix. The fact that there was an either or decision means Felix wasn't producing what was being claimed.
3. An entity generating 12 million a year of revenue would never get sold for $4,000,000 on contract purchase. Two issues with this. First, the valuation is completely off. Second, there would be some kind of immediate cash commitment and/or revenue sharing. After all the reason Mexus needed to sell Felix was to raise cash to build out Elana.
Elana never made the amounts that was (and still is) being claimed.
This was supposed to be a higher grade area. The company has portrayed it as such. Compared to the numbers the company has thrown out at for other areas assayed these recent drill results are paltry.
Earlier this year the company reported 3 samples at Ures showing 9, 47, and 10 grams of Au each with 41, 33, and 8 grams Ag as well.
A year ago Santa Elena was reported as adding new material to the heap leach pad that was assayed at 12 to 14 grams per ton Au.
So hearing the latest drilling showed one hole had "detectable amounts" (whatever that means), another had 0.5 g/t and the best one had 6.28 g/t is not good when compared to the previous reports that other areas were supposedly 12 -14 g/t.
The company did just as much to set up the unreasonable expectations as everyone on this board.
Averaging drill hole results is not a good way of calculating gold. Mexus did that in a previous report from the Argo drilling results.
What you've described is the way most explorers would proceed from here. Not sure what Mexus plan will be after this. It will likely depend on if the results of these first 10 drill holes are enough to convince a JV to jump aboard.
So far, I'd say no. The results aren't even enough to get more investors to move up share price.
You aren't calculating it correctly. You seem to forget, Mexus protocol requires averaging the results of the holes in order to boast about a higher overall number. Ok, I kid...
At the end of the day it isn't bad news, but it isn't great news either. Also keep in mind, this is not the official report. Its early in the analysis and the results can still go either way.
Not likely. The loan isn't due until October 2019. Too early for the lender to be playing those kind of games.
After the 1:500 R/S many of us were left with fewer than 5,000 shares.
My guess is it is probably somebody who had their million shares R/S into 2,200 shares and wanted to sell before the 1:10,000 R/S so they didn't get stuck with another $30.00 fee from their brokerage.
In previous posts on this board you wrote;
Hmmmm..... what could have possibly caused someone to change their mind about Mexus over the last two years?
Oh I remember, the company mislead everyone about what was going on during those two years.
For example, imminent gold pour, MarMar paying all production costs, toxic loan taken out, second toxic loan taken out etc....
Some can't seem to take their blinders off and keep drinking the Kool-Aid the company is feeding them without any critical thinking analysis.
Wow, .01 to .0186 Really? We'll be rolling in the money.... except that less than a month ago this was .05 post R/S and most of us were in even prior to that. If it gets to a dollar then I'll get excited.
You're missing the most obvious trend on your chart. The stock is still trending downward. Lower lows - not higher highs. No reason to even think about buying until that trend reverses (and two back to back closes at even or .0001 higher than the previous day, is not an upward trend)