Many reasons.
For one, it's been compared to GORO. Perhaps there could be some similarities, but MXSG has no proven reserves, and has done little to prove what is possible, at least compared to what GORO had done long ago. They commissioned many studies and reports, including a full feasibility study or studies, before a production decision was made, most assuredly. MSXG, lacking funding or enough competent mining people, is stuck with needing a JV partner, or in the case of MarMar, an operating partner. Which begs the question--why did Argonaut pull out? Maybe due to the moribund market conditions? Or, could it be that the project is not as fantastic as some here think it is? Personally, having looked at the bulk, surface mining plans and estimated grades, that does seem quite good. Any lode mining, however, would definitely need to have much higher grades, as costs aren't what they were in bygone days. But, from what little reading I've done, I don't see that enough drilling and testing was previously done to make a good enough estimate of what the underground resource (and grades) might be....
Further, if they do actually start producing, I believe the terms call for MarMar to receive all the revenues until their expenses are met, iirc.
Yet, it's market cap is over 1/3 of GORO's which has 56m shares out, yet trades at only ~$4.50. MXSG has more than 10x the shares out, has minimal revenue, and may not achieve positive earnings anytime soon. I'd say it is considerably overvalued, especially considering the depressed gold market and industry. Most precious metals stocks are seriously depressed.
That said, at least on the surface, MXSG does seem to be a real company with potential. The same can not be said for most OTC miners...and almost none that are not SEC registrants.
I have seen one point raised by someone here, which is that MarMar Mining has no online presence. That is a bit concerning, though considering their business, perhaps it is not an issue.
