I am the reason why NMC is changing its website as I discovered a fraud that has been committed against the Stockholders and Investors. I have finished a 22 page report with pictures and eight exhibits showing how this fraud was committed. My son and I are in a position to help NMC with a process that we believe can harvest the Skull Valley Minerals and we have access to project funding. Here is a little of what is my report.
NMC and Skull Valley caught our interests as we saw they had employed the services of a Gary Schmitt (owner of Advanced Analytical Labs) and he failed to deliver what he was paid for. This struck a nerve as we had a very unpleasant experience with Schmitt years ago. It was in that spirit that we reached out to NMC’s CEO (Michael Sheppard) to offer our help.
Michael Sheppard was interested in our assistance so he directed me to NMC’s Private Website. Instead of being sold on the project I discovered what I believe to be the most dishonest project valuation since The Bre-X Scandal. It was the first thing on NMC’s web page, it was named: Nevada Mining Company Executive Summary of All Projects: Skull Valley – La Escondida – Silver Hills; Dated 1-20-15. (Hereafter “Executive Summary”)
Many that do not understand metallurgical work would have been fooled by the materials presented in the Executive Summary; however after seeing this Executive Summary my heart dropped. At the time I thought: Michael Sheppard has been taken for a ride and someone coached him into publishing this. At the time I supposed that Sheppard was a godly man and he could not be a part to this. Therefore, I alerted him to what I discovered and told him that the Executives Summary is very deceitful and was being used to deceive NMC’s Stockholders and Investors. Sheppard’s response was to go on the defensive, play the deniability-card and tell us things that were blatantly false which set off major alarms.
Responding to my statement that NMC’s Stockholders have been seriously misled by the Executive Summary Sheppard wrote, “First & foremost, the private website that you viewed is just that; PRIVATE meaning our shareholders have not seen; therefore could not be deceived. Even more importantly, the Executive Summary, independently prepared by The Blackstone Group who commissioned Advanced Analytical, has NOT been made public.” The response did not sit right with me but I assumed he was telling the truth, as I did review the Executive Summary on the private website. Then one night I decided to look at NMC’s homepage and the foremost presentation on that page was the Executive Summary so Sheppard had told me wrong.
The second issue was Sheppard’s attempt at playing the deniability-card telling us the Executive Summary was independently prepared by The Blackstone Group and that Blackstone paid for the studies that made up the Summary. Sheppard wrote, “Even more importantly, the Executive Summary, independently prepared by The Blackstone Group who commissioned Advanced Analytical, has NOT been made public.” At first I believed Sheppard and then I re-read the Executive Summary and found Sheppard’s statement was untrue. Consider:
? On the Executive Summary’s first page it states: Prepared By: NMC, Inc. (Nevada Mining Company)
? Geosyntec is a main contributor to the Executive Summary concerning the Skull Valley Project. This is the company that came up with a tonnages numbers for the Stored Tails. Geosyntec issued a report concerning their findings and this report shows NMC as the owner of the report, it was address to Michael Sheppard as NMC’s CEO. The subject of the report was Evaluation of the Peeples Mine Arizona Concentrates Quantity, Skull Valley, Arizona.” The reports starts out by saying: “Dear Mr. Sheppard: Pursuant to your request of 13 July 2007, Geosyntec Consultants, Inc. (Geosyntec), is pleased to provide this report evaluating the quantity of Arizona Concentrates within pits located at the Peeples Mine in Skull Valley, Arizona (Figure 1), owned by the Nevada Mining Company (NMC).” Clearly this Executive Summary was the work of NMC and not an independent report prepared by The Blackstone Group.
? NMC commissioned Advanced Analytical Labs (“AA Labs”) to complete a 2012 Phase I Extraction Study which heavily contributed to the Executive Summary’s Skull Valley evaluation theory. It was a “Report of Phase I results of Ore gather from NMC property in Skull Valley, Arizona”. The report was addressed to Mr. Sheppard and the first sentence stated, “This Firm was retained by Nevada Mining Company (hereafter ‘NMC) on or about January 1, 2012.” Clearly the Blackstone Group did not commission AA Labs study here.
? Much of what is in the Executive Summary were direct quotes from NMC’s Disclosure Document dated March 15, 2009.
? A second Executive Summary has been located with the same title but dated August 8, 2011. This Executive Summary was also prepared by NMC, not the Blackstone Group.
? All we can find that The Blackstone Group contributed to the Skull Valley portion of the Executive Summary are six assays that they paid AA Labs to perform. As such, The Blackstone Group is not the author of the Executive Summary. Also a lot of the materials in the Summary were not independently prepared by any independent third party but instead are the work product of NMC. Clearly all this is directly crosswise to Sheppard statement, “Even more importantly, the Executive Summary, independently prepared by The Blackstone Group who commissioned Advanced Analytical, has NOT been made public.”
What upset me the most about Sheppard’s response was the attitude it is okay to use a dishonest Executive Summary as a sales aid to attract funding as it was “independently prepared by The Blackstone Group”. Later Sheppard told me he would fix the Executive Summary by editing it to state Prepared by The Blackstone Group. Deniability is not the proper way to correct a deception. That is like saying NMC is licensed to kill Stockholders and Investors (financially speaking) for they did not manufacture the gun.
Is NMC’s Current CEO and Board Guilty of Securities Fraud?
On December 18, 2017 and with an email I alerted Michael Sheppard in more detail about the dishonesty I found in the Executive Summary. Now at the time I believed that Sheppard was a godly man that had been deceived by his advisers. So I warned him about the dishonesty in the Executive Summary, I explain how this was being used to commit fraud. I stated, “However if this Executive Summary was used to influence someone to part with money for the benefit (to some degree) of a party involved that fully understood the deceit imported into the document then that is a clear case of fraud on the part of that person only.”
In my research I learned that after January 20, 2015 that at least one Investor has been influenced by the Executive Summary and other deceitful information prepared by NMC. As such, at least one fraud has been committed under Michael Sheppard and the new Board’s watch. This Investor paid NMC a $500,000 non-refundable deposit and purchased a substantial amount of shares in NMC and was required to make a second stock purchase. This was in exchange for a contract position in the Skull Valley Tails. Gary Schmitt and/or AA Labs also received funding from this investor. NMC and/or Gary Schmitt created a situation where it was impossible for the Investor to adhere to the terms of the contract and then NMC terminated that contract keeping the money invested.
We do not know how many investors have invested in the Skull Valley Project besides the Investor listed above. However, we know of one other investor that gave NMC approximately $1 Million before 2007. What both these Investors have in common is that after they could not locate a process to harvest the assay values for the Skull Valley Project NMC terminated their contracts and NMC kept the money invested by the Investors.
So are NMC’s current CEO and Board guilty of committing Securities Fraud? Securities Fraud has been committed and from my dealings with NMC I see a very clear intent to deceive the public, its Shareholders and Joint Venture Partners. NMC has repeatedly promoted its self as an entity with substantial assets when, in fact, it is worth very little. In my opinion within this presentation enough evidence has been presented to prove they are indeed guilty of a Bre-X type Mine Fraud.
AI
