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Red Flags..... Strange that KERR loaned San Gold 1.6 million dollars. San Gold is now in bankruptcy court and they owe some 90 million dollars, including the 1.6 million owed to KERR. Why would KERR loan that much money to a company that was clearly having MAJOR financial problems. Also, it turns out that the 4.3 million dollars KERR raised last fall is all gone as they just paid a debt with 5 million shares done at 7 cents. This means that KERR is broke and is going to have to do a financing. Given they paid off debt at 7 cents sets the stage for a placement with similar terms..... Something doesn't seem right with KERR..... I think the share price of KERR is going to drop...
Red Flags..... Strange that KERR loaned San Gold 1.6 million dollars. San Gold is now in bankruptcy court and they owe some 90 million dollars, including the 1.6 million owed to KERR. Why would KERR loan that much money to a company that was clearly having MAJOR financial problems. Also, it turns out that the 4.3 million dollars KERR raised last fall is all gone as they just paid a debt with 5 million shares done at 7 cents. This means that KERR is broke and is going to have to do a financing. Given they paid off debt at 7 cents sets the stage for a placement with similar terms..... Something doesn't seem right with KERR..... I think the share price of KERR is going to drop...
Kerr Mines makes SmallCapPower.com breakout list!
http://www.smallcappower.com/posts/technical-breakout-stocks-23-01-2015
KER has come a long way down since 2011 but it has also gone through many changes and is going through more as I type. At the end of the day KER will end up with the Copperstone mine. It was developed by Bonanza, BZA. KER took BZA over last summer. Copperstone is on care and maintenance but it's a fully permitted mine with full infrastructure in place. KER management has stated that Copperstone "Will always be a low cost producer." When BZA was mining Copperstone they had a poor mine plan and the ore became too diluted. In combination with a dropping gold price and higher expenses(fuel) BZA stopped mining. KER believes that the mining plan was flawed and can be fixed. With Copperstone being fully permitted, full infrastructure in place, a rising gold price, it won't take much to get Copperstone back into production.
KER is selling it's northern properties in Canada. Once sold KER will have millions in the bank. I have not been able to determine exactly how much but I think it will be about 7 million? Perhaps someone can help me with a more accurate number...... KER also has about 110 million shares outstanding. They have lots of options and warrants but they are WAY out of the money....I'm in at 7.2 cents with 200,000 shares. I expect to make out well....
Kerr Mines is moving....
http://stockcharts.com/h-sc/ui?s=KER.TO
Excellent, you know exactly what has been going on. Question is, when will it end?
Excellent Gold and Silver Analysis!
Gold Analysis
Silver Analysis
Excellent Gold and Silver Analysis!
Gold Analysis
Silver Analysis
KER is breaking out! For good reason, too. Fully permitted and all the infrastructure. The Copperstone property has been drilled extensively. The mine can go into production in short order and with a rising gold price this creates an unbelievable opportunity.
Kerr Mines Ready To Pop!
Kerr Mines is a very good bet in a rising gold market. They have the Copperstone mine, which is fully permitted and has all the infrastructure for mining in place. The company recently had a 1 for 15 reverse split and so tax loss selling was brutal pushing the price all the way down to 6 cents. However, this gives rise to a new opportunity for those entering now. The company is selling some properties in Canada and that will leave them debt free with millions in the bank. Bonanza, BZA, was taken over by KER. BZA had put Copperstone on care and maintenance but the new KER management believes that BZA had a lousy mine plan and diluted the ore. Further, KER believes that the mine is really a low cost producer with the proper approach. This mine is going to go back into production and with the beaten down price you can buy it for pennies on the dollar.
Bullish Bet On Gold Made!!!
Someone is convinced gold is moving up!
A trader just placed a giant bet on a $130 rise in the gold price
Bullish Bet On Gold Made!!!
Someone is convinced gold is moving up!
A trader just placed a giant bet on a $130 rise in the gold price
This is opportunity staring you in the face. After this company was devastated with a 1 for 15 consolidation and the current sales of the Canadian properties what's left? Copperstone..... With a share price of 7 cents the market cap is a mere 7 million. You get a fully permitted mine with full infrastructure, decades of drills results, and a property sitting in a friendly country. The share price has bottomed so this is where you make the cash. What happened before is behind you, this is a new beginning. After the sales of the Canadian properties KER will have millions of cash to get things moving again. The new management believes that the mine is a low cost producer and that the BZA just didn't have a good plan to contain the ore dilution. This mine is going to start up again.....
Tax loss selling decimated the share price. That is behind us and moving forward this stock has huge potential and could easily climb back to the 35 cent range it was in last summer.....
While the miners are negotiating for scraps management is eating filet mignon and drinking fine wine.... Further, if you look at the compensation chart in this document (page 33) you will see that the pay cut management took last year is really interesting! Notice that their cash based salaries all doubled, tripled, and even quadrupled.... and that their option based incentives were reduced..... No sense in taking huge amounts of options when you can get cold hard cash in your pocket right now. Then we can tell everyone we took a pay cut....If I was a miner at USA I would be so PIZZED OFF......
http://www.us-silver.com/files/2014mic.pdf
2013 Total Compensation
Darren Blasutti $595,501
Warren Varga $392,210
Robert Taylor Chief $616,803
Daren Dell $330,929
Peter McRae $335,492
Sad state of affairs at USA.....
http://www.glassdoor.ca/Reviews/Employee-Review-U-S-Silver-and-Gold-RVW3052117.htm
“Worst employer in the Silver valley, very unethical business and labor practices”
Anonymous Employee (Former Employee)
Wallace, ID (US)
I worked at U.S. Silver & Gold full-time for more than a year
Pros – - U.S. Silver & Gold tends to change every year or so, in several ways. The approach to mining will change frequently ("small mine" or "large mine" method, different work schedules, mechanized or conventional), which at times is somewhat of positive since it allows miners a chance to get trained in multiple types of mining.
- The pay and benefits aren't too bad for most positions, but management is very aware that the majority of workers are locals that are willing to accept lower pay in order to stay close to home. Motivated miners can really rake in the money, if they can pull a round every day.
- The safety department takes their job seriously and they do very well to ensure employees are working safely.
Cons – - Management, and their vision changes more frequently than you would change your socks. Most of the management (both locally at the mine and in Toronto) are misfits from other companies that were released from Barrick, Teck Cominco, ASARCO, Coeur, and so on.
- The history of the company is one employees cannot take any faith in. RX Gold, a failing gold company whose only property is now closed, a company that basically lied about to stock holders and workers at U.S. Silver before the merger, glommed onto U.S. Silver & Gold as as survival tactic. The RX Gold management displaced many of the existing U.S. Silver management. The new management from RX Gold included a slew of absolutely unnecessary Vice Presidents, consultants, and Board Members - all of whom are given salaries beyond the range of what is provided at companies ten times the size of U.S. Silver. The company is over-managed by a detached enclave ruling from 1,800 miles away, in another country that visits once every few months or so. That management makes broad, sweeping decisions based only on overly optimistic, unrealistic info fed to them by local managers.
- The entire mine is run by engineers that exclusively use spreadsheets to forecast the performance of the mine. They never take into account the natural ebb or flow of the mining cycle and inherent workflow bottlenecks, such as infrastructure and upkeep of the mine, limitations of shaft speed and availability, and unexpected events. The myopic, self-congratulatory, detached, good-ol'-boys-club management consistently over-forecasts (to ensure they get higher bonuses). Shortfalls are very common, and management is left scratching their head EVERY quarter as to what went wrong. Then they expect workers to compensate for their unrealistic, poorly calibrated spreadsheets.
- Part of the catch-up that management expects is "Paid holidays" are almost always exchanged with an extra MANDATORY Saturday or Sunday worth of work, both for hourly and salary employees (and salary employees don't get extra pay for that day).
- Silver price varies quite a bit over the long term, and employment is NEVER guaranteed for very long there. Likewise, don't let them sell you on the silver escalator or profit sharing - those come and go with the price of silver. They stripped profit sharing from the supervisors at the start of 2013 to save themselves a few bucks as well - something they had been receiving for years up to that point.
- The corporate culture changes just as rapidly as silver price, and the employees are expected to to change their lifestyle too - except management of course. Schedules change, mining methods change, crews change - there's very little consistency, especially for entry level laborers in the mine and tech staff.
- Likewise, corporate culture has changed from a friendly-seeming, family oriented, "local" business, to a Toronto puppet that cares little at all for its workers - where workers are never told what is going on, they are blindsided with MASSIVE layoffs (129 in the last go). What's worse is the management is PROUD of how good they are at keeping information from their workers. I've never seen a publicly held company that enjoys the cloak-and-dagger management style so much. In 2013 the company culture is one of fear, paranoia, and rumors. No one ever knows who is next to be laid off; so many employees are busy jockeying for favor with the king-makers in order to make sure they have a job after the next massive round of layoffs. Management will lie with a smile to every single worker one day, then strip many of them of their job the next day.
- The company will absolutely NOT hesitate to put their hand in your pocket. They keep adjusting the miner contract system to save themselves a few bucks, at the expense of the laborers' pay. For a while they had hired a guy whose job it was to oversee contracts, and it seemed like his job was quite literally to short miners' pay. Every pay period, there would be FURIOUS miners in his office, and in the Superintendent's office. The company will do what they can to score free cash from their salary employees, when and where possible. They stripped supervisors of profit sharing one quarter and never returned it, they charge you for many things that you need to work with (and don't tell you it comes out of your pay). U.S. Silver & Gold is absolutely ruthless about how they treat their employees, especially when the company is hurting for cash.
Advice to Senior Management – - Please just get rid of the majority of the board and the Vice Presidents. I know that they are fund-raisers to excite the stockholders, but the board and the VPs are grossly overpaid for how small the Galena mine is and how poorly the mine (and the company as a whole) has performed. The company simply doesn't need them.
- Stop screwing with the contract system. I know that miners "will always complain about their pay", but you're not helping things by trying to screw the laborers out of their earned wages. Your goal of trying to save the corporation a few bucks (at the expense of the laborers and staff) is obvious and unappreciated. Stop pretending like you changed the contract system to "reward good miners"; you did it to save money and everyone knows it.
- The corporate culture of lies, paranoia, and fear has simply got to stop. Just because management doesn't have their feet on the ground well enough to feel what is going on or to hear what is being said doesn't doesn't mean that it's not happening. Plugging your ears and ignoring reality doesn't make it go away. The rate of attrition is as high because the company is bleeding to death, and also because management has been dishonest, and they pride themselves in keeping secrets.
No, I would not recommend this company to a friend – I'm not optimistic about the outlook for this company
No, as much as I would have loved a change I didn't think there would be any. I am just completely shocked that deals like the RXE\USA mergers are legal. I have also completely lost respect for Eric Sprott. When you add up the insider wages, bad financings, ongoing costs to maintain a dead mine, the fairness opinion, the dilution, the probable strike, and the millions of options management has received and continues to receive on a regular basis, it leaves a very bad taste in one's mouth.
I have really learned a lot here. Unfortunately they were very bad lessons.
Very good advice to WITHHOLD on all directors.
I really hope no one else is thinking like you. Generating cash flow through options is the last way one should raise capital. Options should be used to legitimately reward good performance, not to line the pockets of insiders. You say that USA has screwed over it's shareholders and then you say they deserve millions of options. That makes zero sense....
Further, if those options get into the money then USA probably won't need the cash anyway. The story is simple. The price of silver goes up and the share price will go up, too. So, you will trigger the options when the company doesn't need the money and in the process just dilute the shareholders.
I have a very difficult time understanding how anyone could vote yes to the USA insiders. Some of the deals they have done are crazy, in my opinion. When have you seen a net smelter royalty given for getting a loan? Does that deserve a 150,000 options for every insider? How about 10,000,000 warrants to get a loan? Have you calculated the percentage of dilution all the outstanding warrants and options add up to?
I recommend that every USA shareholder votes NO to this group of insiders. When the common shareholder is getting diluted into nothing while the insiders position is consistently topped up it is simply not acceptable.
No one has ever questioned the potential of the assets of USA, excepting the other pathetic deal where some 33% of your share value was traded for a closed mine.
Don't think for a second that there are not fully qualified and competent people available to run USA. They are out there.
Dilution is reality, not perception. Diluting the stock transfers value from long term shareholders to those benefitting from the new shares. I think that one needs to be very wary of how Sprott now conducts his organization because they clearly do not care about long term shareholders. A major piece of USA was traded for RXE. What value did USA shareholders receive for that? Nothing... Insiders are printing options by the millions. What value did USA shareholders receive for that? Nothing.... Management has given away a net smelter royalty for a loan. That deal is preposterous, in my opinion. Don't forget the tens of millions of warrants that are now out there ready to take a few more percentage points from your share value.
The dilution taking place is NOT perception. It is real, and it is taking away value from your investment. I estimate that since the RXE merger that approximately 50% of your share value has disappeared through dilution. Again, this is not perception.
I totally agree and wish Tom Parker was back, too. I can understand Sprott orchestrating the trading of their Bankrupt company, RX Gold, for shares in USA but what I don't understand is why they continue to allow all the absurd deals be made. These guys have given up a Net Smelter Royalty for a financing that wasn't that great really.... They gave up ten million warrants for another run of the mill financing...... They also are handing out options like they're candy! Why is it that Sprott allows this?
I have to say that a net smelter agreement on a loan is unbelievable. I'm really curious to know who all these players really are that have taken over USA because the self serving track record is not healthy for investors. Giving up a net smelter for a loan, or 10,000,000 full warrants for a loan, or millions of options on a regular basis, and the loss of equity traded for Drumlummon does not appear to be a company that is working to building shareholder value.
Yes, that's over the top. From the other board I was alerted to a net smelter return. I am shocked about that! I've never seen anything like it. There have been some strange deals made with this company. Why is it that no one seems to care?
Insiders Stuff Their Pockets..... AGAIN!!!! and this isn't all of them...
Filing Date Transaction Date Insider Name Type Securities Price
Feb 13/14 Feb 6/14 Waisberg, Lorie Direct Ownership Options 50 - Grant of options 125,000 $0.490
Feb 13/14 Feb 6/14 Ryley, Thomas Lovett Direct Ownership Options 50 - Grant of options 125,000 $0.490
Feb 13/14 Feb 6/14 Pridham, Gordon E. Direct Ownership Options 50 - Grant of options 125,000 $0.490
Feb 13/14 Feb 6/14 Edwards, Alan R. Direct Ownership Options 50 - Grant of options 125,000 $0.490
Feb 13/14 Feb 6/14 Davidson, Alexander John Direct Ownership Options 50 - Grant of options 125,000 $0.490
Feb 13/14 Feb 6/14 Agro, Hugh Direct Ownership Options 50 - Grant of options 125,000 $0.490
Feb 11/14 Feb 6/14 Taylor, Robert Michael Direct Ownership Options 50 - Grant of options 175,000 $0.490
Feb 11/14 Feb 6/14 Varga, Warren Direct Ownership Options 50 - Grant of options 175,000 $0.490
Feb 11/14 Feb 6/14 McRae, Peter Direct Ownership Options 50 - Grant of options 150,000 $0.490
Feb 11/14 Feb 6/14 Dell, Daren Direct Ownership Options 50 - Grant of options 150,000 $0.490
When Deal Are Corrupted.... I'll give you one guess which one?
Oh ya, whoopee....!!!! We should become a lead mining company, right?
While on BOD they destroyed all shareholder value. At the same time they gave themselves hundreds of millions of shares. WTF is so great about that?
It would sure be nice if someone pumped this stock up to 5 cents so I could dump the POS. They should rename the company to SC Mining, Share Creation Mining. Nothing but dilution for the shareholders and free shares for the insiders, on top of all the shares they pay to their contractors. Another penny stock to beware of.........
I responded to the last sentence in this post http://investorshub.advfn.com/boards/read_msg.aspx?message_id=77999959
For me, if he knew that the RX Gold mine was going belly up within months of the merger then he is not smart, he's something much more sinister. To be frank, I do not believe for one second that he did not know that Drumlummon was not going to make it, yet there was a lot of positive promotion for the mine prior to the merger.
How can you say that Blas is sharp when he had to have known before the merger that RXE's mine was about to shut down? This to me does not indicate sharp, something else completely.
Did Embry mention any imminently bankrupt companies in Sprott's arsenal that could be merged with USA to create more great synergies?
I agree the regulators are a joke. This is not the first time they have ignored the obvious. I was in a stock about two years ago called White Tiger Gold and there was a very organized revolt against some unbelievable antics. The regulators, OSC, BCSC, federal government, etc, did absolutely nothing.
What gets me here the most is that it was Sprott behind it all. I have been brain washed by King World News and other pro precious metals sites into believing that Sprott is the white knight taking on the big bad Federal Reserve, along with the rest of the corrupt organizations. I now see him as no different, just a different type of shark.
What really bothers me is the impact Sprott had on all the merger BS. They openly used his own company to put a fairness opinion on the joke of a merger deal and then proceed to endorse the deal like it was legit! I now view them in the same light as the Fed and the rest of the PM manipulators. They're hypocrites!! Spewing all the BS about the unfairness of the precious metals manipulations, and then at the same time pulling off what I would consider a heist of the small time USA shareholder!!
Of course the only reason the board got back in is because the Sprott crew probably voted for them. Probably as reward for converting Sprott's soon to be worthless RX Gold shares into US Silver shares.
I will be extremely surprised if the board doesn't give themselves another round of options. The whole thing makes be sick.
You may like taking it straight up the AZZ, but I don't.
If this management team survives then it crystalizes in my mind that Eric and his crew orchestrated the whole merger for their own personal benefit, and not all shareholders. That being, that USGIF shareholders were sacrificed so that RXE shares could be traded for something that was not going bankrupt in the very near future. I have never felt so violated in all my trading career.
By voting for the recommendations you are sabotaging the company.
Sprott Conflict of Interest
How can Cormark give a fairness opinion on the merger when they are owned by Sprott and Sprott owned very large positions in both RXE and USA? Is this not a conflict of interest?
I believe I know what went down here and I have lost all respect for Sprott. I now view him in the same light as the banksters that are manipulating the precious metals.
Ya right, trade a bankrupt gold mine for 30% of US Silver based on a fairness opinion done by your own company.
There has to be a way to expose this.
The merger sucked, let's be serious. As for management, I have no respect for them as I believe they are taking advantage of current depressed market conditions to load up on cheap options, which is ultimately at the expense of long term shareholders. The RXE assets do not compare to those of the original USA. Frankly, I feel totally ripped off. I would also like to know how much this "crack" management team makes for salaries? I don't think they have done anything that warrants high pay and tons of options. USA was better off without RXE. It sucks to be starving while management is drinking fine wine and eating filet mignon, at our expense.
What's management done to deserve all those options?