Discovery Minerals LTD (DSCR)

[Ryan8]

Annual Report Shows SEC Suspension Warranted to Protect Minority Shareholders

I never though managment of Discovery Minerals LTD., would file another report. In doing so they now have admited fraudlent concealment and insider trading.

Read as primer https://investorshub.advfn.com/boards/read_msg.aspx?message_id=167143522


Summary

In the Discovery Minerals Annual report filed December 15, 2021 for period ending September 30, 2021.

This report shows that management for the last 6 months, purposly concealed disclosure of the DSC Coin Sale and results of it, to the public.

That is unless you were a select shareholder who on October 8, 2021 recieved a non public communication from management of Discovery Minerals, disclosing the status of the DSC Coin and other non public inside information about the status of Discovery Minerals Ltd.
Source *5
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768

Why the SEC needs to suspend Discovery Minerals LTD., for inadequate financial information.

On May 11, 2021 Discovery Minerals Ltd.(DSCR), a Wyoming Corporation, caused a national press release to be sent. In this press release Discovery Minerals announced the launch of the DSC coin. Source *3

In this release DSCR represented that the DSC coin was "backed" by more than $100,000,000 in assets. Off this representation Discovery Minerals sold between the time of 5/11/2021 and 6/30/2021, $2,538,000 in DSC coins.
Source *1

On August 18, 2021 Discovery Minerals Ltd. filed a report with OTC markets for period ending June 30, 2021. In this report Discovery Minerals, Ltd., omitted all mention of DSC Coin or the revenue it derived from its sales, including;

1. Page 12. No Revenue - Discovery Minerals, Ltd. reported 0 revenue, analysis of whether the DSC coin sales where accounted for are obvious;

2. Page 16. Revenue Recognition- Criteria of booking the DSC coin sales would qualify;

3. Page 22. Subsequent Events - Management makes a conscious decision to omit in its entirety the DSC Coin sale from OTC mandatory report.
Source *4

On or about August 15, 2021 the management took down the website (evidence of wrong doing) at https://discoverymineralscoin.com, This site was mentioned in the May 11, 2021 Discovery Minerals, Ltd., press release in
Source*3.

A web archive of the discovery mineral coin website for the May 17, 2021 is available at
Source *2a
https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/


On or about September 28, 2021 Discovery Minerals was relegated to the expert market. This OTC tier demotion caused an immediate 90%+ decline in the share price.

On October 8, 2021 in the Investors Hub message board for Discovery Minerals Ltd at
https://investorshub.advfn.com/Discovery-Minerals-Ltd-7600

A message board poster by the alias of Frez posted a communication that management sent to him in a private nonpublic communication referenced on Discovery Minerals Ltd., Investorshub message board Post 105320
Source *5
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768

"...Hello,

Due to the high volume of emails, we will be having longer than normal response times. We apologize for the inconvenience but we are grateful for your support and patience.

DSCR is committed to transparency, and we are working tirelessly to ensure we have everything up to date on our website, social media and investor relations.

If you have questions about the coin, we will be issuing refunds. Please send a copy of receipts or purchasing agreements to us via email. Please allow 7 days for a response

If you are inquiring about verified pink status on OTC, please know we have submitted all necessary paperwork and are awaiting updates as well.

If you are inquiring about The Ruby Mine or our JV, please know we have more details to be released in the next few weeks.

Thank you for your support. We appreciate all of our shareholders.

Best,DSCR Team..."
Source *5
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768

Summary

In this non-public communication management of Discovery Minerals sealed their fate by referencing the coin in the only communication since May 11, 2021 Source *3 when they sold $2,538,000 worth of DSC Coins and forgot to disclose it anywhere else.
Source *1. https://etherscan.io/token/0xf4a9b9311d5167dc36e6b39f5c0baaa60bbcbbc1

Source *2. https://discoverymineralscoin.com

Source *2a https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/

Source *3. https://finance.yahoo.com/news/discovery-minerals-announces-official-launch-123000259.html

Source *4 https://www.otcmarkets.com/otcapi/company/financial-report/296352/content

"...If you have questions about the coin, we will be issuing refunds. Please send a copy of receipts or purchasing agreements to us via email. Please allow 7 days for a response..."
Source *5

So why would management of Discovery Minerals Ltd., consciously conceal the DSC Coin sale?

On May 11, 2021 in a press release Discovery Minerals stated that the DSC Coin was BACKED, by 2,100 Ethereum, 2,100 Bitcoin, 2,100 ounces of Silver, and 2,100 ounces of Gold.

Off this material misrepresentation of assets backing the Discovery Minerals Coin, management sold $2,538,000 worth of DSC Coin.
Source *3
https://finance.yahoo.com/news/discovery-minerals-announces-official-launch-123000259.html

Discovery Minerals has 0 revenue and only $238,000 in assets.
Source *4

This material misrepresentation of more than $100,000,000 in assets backing the DSC Coin allowed management of Discovery Minerals Ltd., the ability to sell $2,538,000 in DSC Coins between the period of May 11, 2021 and June 30, 2021.
Source *1
https://etherscan.io/token/0xf4a9b9311d5167dc36e6b39f5c0baaa60bbcbbc1
Source *3
https://finance.yahoo.com/news/discovery-minerals-announces-official-launch-123000259.html

Archive of the Discoverymineralscoin.com site that management of DSCR concsioulsy took down
Source *2a
https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/

* Sources

Source *1. DSC Coin Sales Etherscan
https://etherscan.io/token/0xf4a9b9311d5167dc36e6b39f5c0baaa60bbcbbc1 ;

Source *2. Discovery Minerals, LTD. destroyed evidence of this by purposley taking down the website https://discoverymineralscoin.com website that sold $2,538,000 in DSC Coin.

Source *2a. Archive of the Discoverymineralscoin.com site that management of DSCR purposley took down to conceal the slaes of $2,538,000
https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/ ;

Source *3. Press Release 5/11/2021 on DSC Coin
https://finance.yahoo.com/news/discovery-minerals-announces-official-launch-123000259.html ;

Source *4. Filed OTC Report for Discovery Minerals Ltd. for period ending June 30, 2021, filed on August 16, 2021.
https://www.otcmarkets.com/otcapi/company/financial-report/296352/content .

Source *5 Investors Hub Post #105320 dated October 8, 2021 by Frez - communicating "Coin Refund" to a select group of shareholders, via Discovery Management violaton of Regulation FD
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768

Supporting Research

Scienter is a defendant's knowledge that an act or conduct is wrongful and intent to act despite this knowledge. Scienter is often an element of liability, including in most cases involving assertions of fraud.

What are the elements of scienter that management of Discovery Minerals Ltd. committed.

1. Misrepresentation of DSC Coin Sale.

On May 11, 2021, the managment of Discovery Minerals Ltd. a Wyoming Corporation, sent out a press release, announcing the launch of a Ethereum token offering. *1

In that nationally disementated press release, Discovery Minerals, Ltd., represented that the DSC Coin was backed by more than $100,000,000 in assets.

"...The Discovery Minerals Coin ("DSC") is what is known as a Tethered Coin, whereby once fully distributed DSC will have a total of 2,100 Bitcoin, 2,100 Ethereum, 2,100 ounces of Gold, and 2,100 ounces of silver "backing" the coin..."

*1 Source: https://finance.yahoo.com/news/discovery-minerals-announces-official-launch-123000259.html

Upon examination of Discovery Minerals Ltd., latest publicly filed financial report filed on August 16, 2021 for period ending June 30, 2021, Discovery Minerals, LTD reported zero in revenue and assets of $238,000. *2

2. A financial misepresentation of more than $100,000,000 represented "backing" the DSC Coin.

*2 Source: page 12 (no revenue) & 13 ($238,000 assets) https://www.otcmarkets.com/otcapi/company/financial-report/296352/content

3.Through this misrepresentation of assets "backing" the DSC Coin. Discovery Minerals, Ltd was able to sell & transfer $2,538,000 worth of DSC coin sales, between the time period of May 11, 2021 to June 30,2020 *3.

*3. Source: https://etherscan.io/token/0xf4a9b9311d5167dc36e6b39f5c0baaa60bbcbbc1#balances

4. On August 16, 2021 Discovery Minerals Ltd., filed a mandatory current financial report with the OTC markets. This report covered the time period between March 31, 2021 to June 30, 2021 and should of included disclosure of the $2,538,000 worth of DSC Coin sales, it did not. In this report, Discovery Minerals Ltd. consciously conceals disclosure of the DSC Coin Offering three times including:*4.

Omission 1. The reporting of zero revenue;
(Page 12 of *4)

Omission 2. Disclosing the method of booking revenue, consistent with the DSC Coin sale;
(Page 16 of *4)

Omission 3 Subsequent Events section, omitting that the DSC Coin offering existed.
(Page 22 of *4)

*4 Source: https://www.otcmarkets.com/otcapi/company/financial-report/296352/content

5. To further conceal DSC coin offering sale of $2,538,000, management of Discovery Mineral Ltd., purposely took down the DSC coin offering website.
https://discoverymineralscoin.com (website taken down by Discovery Minerals management

An archive of the DSC coin offering website,
https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/

The minority shareholders have lost 95% of the value of their stock since September 2021. The main driver of this, the market has discovered the negligence of what management has concealed.

This is why this company needs to be suspended, until Discovery Minerals Ltd., can explain these disrepancies to the market, the minority shreholders will continue to lose money in this stock.

Does Discovery Minerals Annual Report Admit Fraud & Insider Trading?

Management filed a rushed and incomplete annual report last night for period ending 9/30/2021.

In this annual report Discovery Minerals Ltd. admits for the first time in a public disclosure document that it offered a crypto currency coin for sale.

Note 8 – Subsequent Events

"...In December 2021 the Company entered into an escrow agreement whereby all coin buyers will be refunded their full purchase amount..."

Source *1
https://www.otcmarkets.com/otcapi/company/financial-report/315640/content
Page 22

Why is this a BIG DEAL

1. It proves insider information happened.
Post #105320 is a copied email from Discovery Minerals LTD., on October 8, 2021 to a "select non public Discovery Minerals LTD., shareholder.

"...If you have questions about the coin, we will be issuing refunds. Please send a copy of receipts or purchasing agreements to us via email. Please allow 7 days for a response..."
Source *2
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166284768

2. It proves managment's scienter, who consciously made a decision to conceal from the minority shareholders, in public disclosures for the last 6 months the DSC Coin sale.

3. On August 18, 2021 Discovery Minerals Ltd. filed a report with OTC markets for period ending June 30, 2021. In this report Discovery Minerals, Ltd., omitted all mention of DSC Coin or the revenue it derived from its sales, including;

1. Page 12. No Revenue - Discovery Minerals, Ltd. reported 0 revenue, analysis of whether the DSC coin sales where accounted for are obvious;

2. Page 16. Revenue Recognition- Criteria of booking the DSC coin sales would qualify;

3. Page 22. Subsequent Events - Management makes a conscious decision to omit in its entirety the DSC Coin sale from OTC mandatory report.
Source *3 https://www.otcmarkets.com/otcapi/company/financial-report/296352/content

Further acts proving management scienter to conceal the DSC Coin sale.

4. Discovery Minerals LTD.,management took down the down DSC coin website on August 15, 2021. This was 1 day before not disclosing the coin sale on a mandatory OTC Market report for period ending June 30, 2021.

*4 Source https://discoverymineralscoin.com
*5. Archive of website that the management of Discovery Minerals Ltd., took down on August 15, 2021. https://web.archive.org/web/20210517233805/https://discoverymineralscoin.com/

6. Proof of the DSC Coin Sale
*6 Source https://etherscan.io/token/0xf4a9b9311d5167dc36e6b39f5c0baaa60bbcbbc1

What is fraudulent concealment?

Under contract law, a plaintiff can recover from a defendant on the grounds of fraudulent concealment where the defendant (1) concealed or suppressed a material fact; (2) had knowledge of this material fact; (3) that this material fact was not within reasonably diligent attention, observation, and judgment of the plaintiff; (4) that the defendant suppressed or concealed this fact with the intention that the plaintiff be misled as to the true condition of the property; (5) that the plaintiff was reasonably so misled; and (6) that the plaintiff suffered damage as a result.


What is Scienter

A legal term that refers to a culpable state of mind. In other words, scienter is a defendant's knowledge that an act or conduct is wrongful and intent to act despite this knowledge. Scienter is often an element of liability, including in most cases involving assertions of fraud. Where scienter is an element of a claim, courts require a showing that the defendant had knowledge that the alleged misconduct (which may include an action or statement) is wrong or illegal before issuing judgment or conviction.

File an SEC Complaint here https://www.sec.gov/oiea/Complaint.html