Gold Exploration in West Africa

[FL]

Some transaction! Did Metak owners' $5K become $666K?

Am I missing something? The unnamed "vendors" who sold Metak to Cambrian for 1,000,000 Cambrian shares on June 13, 2003 didn't yet have the 75% interest in the Subranum gold concession in Ghana. No, Metak got it 5 days later on June 18, 2003 for US$5,000 (paid to Samtua Mining Resources Ltd.) and various promises contingent on future development; those "vendors" had sold Metak to Cambrian Mining (CBM on London AIM) for those same promises plus the 1,000,000 Cambrian shares, then trading at about UK 40p/share, hence worth about US$666,000 at the time.

Look at the Cambrian Mining prospectus at:

http://www.cambrianmining.com/cam_publications/CambrianMiningPlc20030618.pdf

Compare "Gold Sector" on page 8, "Post Balance Sheet Events" on page 27, the Metak balance sheet on page 38, and Notes 14.14, 14.15 and 14.16 of the audited account on page 57.

Evidently Metak, a Jersey island legal entity with a share capitalization of $10,000, spent US$5,000 cash (paid to Samtua Mining Resources Ltd. for the Subranum rights); its prior owners got 1,000,000 shares of Cambrian when Metak was bought-out the same month (June 2003), passing the further contingent obligations from Metak's prior owners ("the vendors") to Cambrian.

Throughout the prospectus and in the audited financial statements (by CLB Corporate Finance LLP), the owners who sold Metak to Cambrian are concealed and referred to only obliquely. The Metak sale is NOT listed as a "related party transaction" in the lists on page 25 and page 35. (Nor is Samtua Mining Resources Ltd listed there either.)

Whover they are, it looks, from the prospectus, as though they turned 5 to 10 thousand in cash into Cambrian stock with a market value then of about $666,000 in 5 days. A remarkable accomplishment for unrelated parties.

FL

P.S. On p 39 is the odd statement: "Metak holds various interests in shares as nominee." Shares in what? Nominee for whom?