CMKM Diamonds Inc. (fka CMKX)

[janice shell]

Yup.

From 28 July:

U.S. Canadian Minerals Inc. (OTCBB: UCAD - News) announced today that it has exercised its initial purchase under an option with CMKM Diamonds Inc. (Pink Sheets: CMKX - News). The option, agreed to last week between the two parties, has been exercised for an additional 2% interest in all of CMKX's mineral claims for $3,000,000 USD. Under the agreement reached last week, UCAD has a one-year option agreement to purchase an additional 10% interest in all of the mineral claims held by CMKX for an aggregate total of $15 million USD payable to CMKM Diamonds Inc.

http://biz.yahoo.com/bw/040728/285175_1.html

Where did UCAD, a company with almost no cash, come up with $3 million? See their recent 10-Q:

The Company also received a stock subscription agreement from a related party to CMKM Diamonds to purchase 600,000 shares of the Company's common stock at a price of $5 per share. The $3,000,000 has been received by the Company and immediately used to exercise the options on the first 2% of the current and future claims of CMKM Diamonds, Inc. under the July 18, 2004 agreement, noted above.

http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001019687%252D04....

Who is this "related party"? Will we ever know? Who'd want 600,000 shares of UCAD, given the rate at which they dilute? Of course those shares apparently aren't restricted, so the related party is free to dump them, if he can. The identity of the related party remains a mystery, but it seems that even so, Casavant feels uncomfortable dealing with a reporting company: last Thursday they announced what appears to be an identical type of deal with a non-reporting shell, St George Metals (SGGM):

CMKM Diamonds Inc. (Pink Sheets:CMKX - News) is pleased to announce that the Company has finalized a joint venture agreement where St. George Metals, Inc. (Pink Sheets:SGGM - News) will purchase a 5% unencumbered and absolute interest in any and all mineral claims held by CMKM Diamonds, Inc. in consideration for $10,000,000 US Dollars and two hundred billion (200,000,000,000) restricted shares of SGGM. The Company has received a $2,500,000 payment with three additional payments of $2,500,000 anticipated within the next 30 days.

http://biz.yahoo.com/bw/040902/25192_1.html

SGGM has no cash, no business, no assets, so it's reasonable to assume that a "related party" is putting up the $10 billion. Is it the same "related party"? I'd guess it is. Note that until 23 July, SGGM had only 40 million shares authorized. On that date they raised the a/s to a staggering 950 BILLION, outdoing even CMKX itself. What about the other 750 billion shares of SGGM? Will they go to the "related party" in consideration for his $10 million? If so, he'll control the company. We won't find out about that, though, because it's a non-reporting Pinkie shell.

Note that although CMKX put out a press release about this new deal, SGGM didn't get round to that until two days later, and then they antedated it. The stock is actually UP, probably because most CMKX "investors" don't understand about dilution and are looking to "diversify" their portfolios. Frankly I don't understand what's sustaining the price. Do they plan to try to manipulate the price so that the "related party" can unload at least some of those 750 billion shares? Or perhaps the "related party" doesn't care: 750 billion x 0.0001 is $75 million. A pretty tidy profit, eh?