CMKM Diamonds Inc (fka CMKX)

[bluediamonds]

Green Baron Report Out on 10/28/04
« Thread started on: Today at 10:39pm »


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CMKM Diamonds, Inc. (CMKX)

Trading in US Canadian Minerals (a CMKX dividend stock) Temporarily Suspended Only One Day after its 3-for-1

Forward Stock Split

On Wednesday, October 27 U.S. Canadian Minerals (USCA) announced that the company’s 3-for-1 forward split had been declared effective. The former symbol for the company was UCAD. This restructuring of the company will allow for the pursuit of additional avenues of financing and future acquisitions. Rendal Williams, CEO of USCA, stated: “With the split and new symbol now effective, the company will continue pursuit of its goals as stated by the board of directors. We expect to have some exciting announcements in the next few days.”

Later that same day, USCA announced it completed the acquisition of a controlling interest in a new processing plant in Buza, Ecuador. The first stage of the facility is 95% complete. The first stage of the plant will have capacity to process approximately 70 tons of gold ore per day. When completed, the second stage of the plant will have processing capacity of approximately 400 to 500 tons of gold ore per day.

In the same announcement, Rendal Williams stated, “… Through our commitment to CMKM Diamonds and Nevada Minerals, USCA is working diligently to expand its production facilities to stay ahead of the processing requirements of the American Shaft gold ore production.”

The next morning, today Thursday October 28, trading of shares in USCA were suspended by the SEC until the end of day on Nov. 10. The SEC said it took action because of questions regarding the accuracy of publicly disseminated information regarding the company’s financing and mining activities and the value of its assets. However, The Green Baron Report expects the shares of USCA to begin trading again at some point next week based on what we believe are unfounded allegations against the company.

Strangely enough, it also came to light this morning that the Saskatchewan Financial Services Commission has delegated to the Director of the Securities Division for a special inquiry that was initiated on October 26. The officers of CMKM Diamonds including Melvin O’Neil are being asked to produce supporting documentation to evidence the possibility of trading unregistered shares of CMKM Diamonds back when the stock carried the symbol CMKI and CMKM. The individuals and related companies are being asked to provide a response by November 9, 2004.

The Green Baron Report thinks now more than ever it is obvious a short position exists in the shares of US Canadian Minerals (USCA) and CMKM Diamonds (CMKX). We strongly believe we have just witnessed a consorted all out effort to tarnish the images of CMKM Diamonds and US Canadian Minerals. On the day following a statement by CEO Rendal Williams to expect “some exciting announcements in the next few days”, and only one day before a huge CMKX/USCA shareholder appreciation event begins in Las Vegas, two separate attacks have been launched with precision. US Canadian Minerals stock had also just rallied strongly again on Wednesday to close at a split adjusted $5.65 (pre-split $16.95). Anyone short this stock would have experienced tremendous losses over the past month.

Although a formal statement has not been issued in response at this hour by either company, we expect both CMKM Diamonds and US Canadian Minerals to successfully and quickly resolve any questions that are being raised by the interested parties. U.S. Canadian Minerals just got done announcing on Tuesday October 25 that it had initiated preparations for compliance with the upcoming additional requirements under the Sarbanes-Oxley Act of 2002. The Green Baron Report notes that this is typically not the type of announcement that comes from a company that has done something wrong.

It seems very odd that the Saskatchewan Financial Services Commission chose this precise moment to inquire about trading activity that probably took place a year ago in CMKM Diamonds. The Green Baron Report is convinced there are other forces at hand that do not want CMKM Diamonds to be successful, and they chose this exact moment to launch its smear campaign.

The Green Baron Report has been told that former SEC attorney D. Roger Glenn will be involved in responding to both inquiries. Again, we are confident that Mr. Glenn’s vast experience with the SEC will resolve these issues in a very timely and professional manner. In the meantime, we will gladly wait for resolution of these matters, and for CMKM Diamonds to become what we still believe will be The Stock Play of a Lifetime.

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