KAT Exploration Inc (KATX)

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WHEN MARKET MAKERS GET IT WRONG ((( SHARE HOLDERS WIN IT BIG ))) Here is a story of one small Mineral Company about to do just that! Sept. 6, 2010

(Analysis from BMB. Good stuff!)

http://current.com/news/92653163_when-market-makers-get-it-wrong-share-holders-win-it-big-here-is-a-story-of-one-small-mineral-company-about-to-do-just-that.htm


HERE IS HOW KATX.. "A SMALL MINING COMPANY".. WILL BREAK AWAY FROM KNOWN MM MANIPULATION "naked shorting of penny stocks " AND THE GROUPS WHO ARE ASSOCIATED WITH THEM. $$ COORDINATED MARKET MANIPULATION $$ .....ONCE IN A BLUE MOON A GREAT LITTLE COMPNY WILL GROW AT A ASTRONIMICAL RATE AND WILL DO EXACTLY THE **OPPOSITE** OF WHAT THE WALL ST. MARKET MAKERS THOUGHT !...".I own shares in a small mining company in Newfoundland Canada who has had a PHENOMENAL RISE IN IT'S PRICE SHARE ...KATX RAN FROM .001 IN NOVEMBER LAST YEAR TO 24 CENTS...(( 23900 % ))..A RECENT PULL BACK IS DIRECTLY RELATED TO " and yes I have proof ! " WHAT IS ABOUT TO HAPPEN IS THAT KATX IS MOVING TO A DIFFRENT "higher" EXCHANGE ...AKA ((( OFF THE PINK SHEETS ))) .........GO DOWN TO PART -3- WICH IS THE MOST IMPORTANT PART........>>Step 3. KATG submits a “friendly takeover” offer to shareholders to purchase KATC outright, which the KATC board of directors will recommend that shareholders accept. This offer will either be cash, shares of KATC


0 Bob_Nordberg

…continued from above....”””((((( THIS IS WHAT MAY BE THE ONLY PART WITCH RICK UK MAY HAVE HAD WRONG “I BELIEVE WE WILL RECEIVE CASH OR SHARES OR COMBANATION OF KATG…NOT C” ))))””” or a combination of both. As I understand it,............................Posted by: Rick-UK Date: Monday, July 26, 2010 6:00:04 AM .... http://www.katexploration.com/

In reply to: Rick-UK who wrote msg# 66416 Post # of 94265

Discussion: future relationship between KATG and KATC (medium to long term strategy discussion)

A little while ago KAT Exploration revealed its corporate restructuring plans in a flowchart which they posted in their website here: http://www.katexploration.com/Graphics/KATX-KATG%20Structure.pdf

In terms of the relationship between KATG and KATC the flowchart said the following:

KATX will continue to Trade on Pink Sheets and will be holding all of its high grade copper & other base metal properties and will eventually reverse merge into another OTC BB entity (i.e. KATC) on a 1 for 1 basis (if you have 1 share of KATX(Pink), you will get one share of KATC(OTC-BB)). KATC will be trading independently and will be a wholly owned subsidiary of KATG.

5 days ago flag reply 0 Bob_Nordberg


Let’s break that down into two parts.

Part 1: KATX will continue to Trade on Pink Sheets and will be holding all of its high grade copper & other base metal properties and will eventually reverse merge into another OTC BB entity (i.e. KATC) on a 1 for 1 basis (if you have 1 share of KATX(Pink), you will get one share of KATC(OTC-BB)).

What this is saying is that on the day of the reverse merger, the existing KATX shareholders will lose their KATX shares (which will cease to exist) and instead will have KATC shares (the new, OTC/BB company). The exchange will be on a “one-for-one” basis, so for every 100 KATX shares owned before the exchange you will end up with 100 KATC shares after the exchange. The new company KATC will presumably have the same O/S and so therefore shareholders will own the same percentage of the new company as they owned of the old company.

Part 2: KATC will be trading independently and will be a wholly owned subsidiary of KATG.

A “wholly owned subsidiary” is a company whose entire shareholding is held by another company (referred to as the “parent” company). The flowchart is therefore stating that KATG will own all of the shares of KATC. If you haven’t come across the term “wholly owned subsidiary” before, here are a couple of definitions that may help to clarify this:

www.investorglossary.com – “A company whose stock is entirely owned by another company.”

www.investorwords.com – “Subsidiary which is owned entirely by its holding company.”

5 days ago flag reply 0 Bob_Nordberg


….”””((((( THIS IS WHAT MAY BE THE ONLY PART WITCH RICK UK MAY HAVE HAD WRONG “I BELIEVE WE WILL RECEIVE CASH OR SHARES OR COMBANATION OF KATG…NOT C” ))))””” or a combination of both. As I understand it,............................Posted by: Rick-UK Date: Monday, July 26, 2010 6:00:04 AM .... http://www.katexploration.com/

In reply to: Rick-UK who wrote msg# 66416 Post # of 94265

Discussion: future relationship between KATG and KATC (medium to long term strategy discussion)

A little while ago KAT Exploration revealed its corporate restructuring plans in a flowchart which they posted in their website here: http://www.katexploration.com/Graphics/KATX-KATG%20Structure.pdf

In terms of the relationship between KATG and KATC the flowchart said the following:

KATX will continue to Trade on Pink Sheets and will be holding all of its high grade copper & other base metal properties and will eventually reverse merge into another OTC BB entity (i.e. KATC) on a 1 for 1 basis (if you have 1 share of KATX(Pink), you will get one share of KATC(OTC-BB)). KATC will be trading independently and will be a wholly owned subsidiary of KATG.

5 days ago flag reply 0 Bob_Nordberg


Let’s break that down into two parts.

Part 1: KATX will continue to Trade on Pink Sheets and will be holding all of its high grade copper & other base metal properties and will eventually reverse merge into another OTC BB entity (i.e. KATC) on a 1 for 1 basis (if you have 1 share of KATX(Pink), you will get one share of KATC(OTC-BB)).

What this is saying is that on the day of the reverse merger, the existing KATX shareholders will lose their KATX shares (which will cease to exist) and instead will have KATC shares (the new, OTC/BB company). The exchange will be on a “one-for-one” basis, so for every 100 KATX shares owned before the exchange you will end up with 100 KATC shares after the exchange. The new company KATC will presumably have the same O/S and so therefore shareholders will own the same percentage of the new company as they owned of the old company.

Part 2: KATC will be trading independently and will be a wholly owned subsidiary of KATG.

A “wholly owned subsidiary” is a company whose entire shareholding is held by another company (referred to as the “parent” company). The flowchart is therefore stating that KATG will own all of the shares of KATC. If you haven’t come across the term “wholly owned subsidiary” before, here are a couple of definitions that may help to clarify this:

www.investorglossary.com – “A company whose stock is entirely owned by another company.”

www.investorwords.com – “Subsidiary which is owned entirely by its holding company.”

5 days ago flag reply 0 Bob_Nordberg

So how can we KATX shareholders own any KATC shares whilst KATG own all of the KATC shares? The answer of course is that we can’t! So what is going to happen? I am convinced that whatever is planned will be great news for shareholders, and my assumption is that the “end game” is that KATG and KATC will be uplisted to the major exchanges in the fullness of time. But what I am less sure of is why KATG will own KATC as a wholly owned subsidiary.

Perhaps the flowchart is completely incorrect in its use of the term “wholly owned subsidiary”. Perhaps what they mean is not that KATG will own KATC, but that the board of directors will be the same in both cases, and the board of directors will be majority shareholders for both companies, giving them effective control of both companies.

Assuming they really do mean KATC will become a “wholly owned subsidiary” of KATG, below is one possible step by step process that would bring us to this position, with some ideas to why each step might be useful. I should point out that these are my own initial ideas not the company’s and as such could be completely wrong. At best they need refining. Anyone care to contribute with their own thoughts?

5 days ago flag reply 0 Bob_Nordberg

Step 1. An OTC/BB shell (a non-trading company which is already on OTC/BB, up to date with its financial records and ready to trade) called BVIG is purchased. Its name is changed to KAT Gold Holdings Corporation (KATG), Handcamp is transferred into it and KATX shareholders receive a “one-for-four” share distribution as compensation.

Why do this?

A. Handcamp gets moved into a separate, OTC/BB company which could attract a whole new bunch of investors – investors that would not necessarily be interested in pinksheets stocks and/or initial stage exploration where nothing is as yet proven on the properties, but who would be very interested in an OTC/BB company with more rigid financial reporting, a smaller O/S, a specific focus on gold and reduced risk through ownership of a property with an existing NI 43-101 report.

B. With the smaller O/S, the reduced risk and the beginnings of movement towards proven resources (and ultimately proven reserves) KATG can expect to achieve multiple dollar share prices more quickly. This means that KATG can expect to attain the sort of prices and price stability needed to move to the bigger boards – AMEX or NASDAQ for example.

C. With the ability to raise funds based upon NI 43-101 resources, KATG can now act as the financier for further purchases and for exploration and proving up of existing properties for both itself and for KATX.

5 days ago flag reply 0 Bob_Nordberg

Step 2. Another OTC/BB shell is purchased, ready for KATX to reverse merge into (just like BVIG was purchased for KATG). The shell company’s name is changed to KAT Copper Incorporated (KATC) and KATX reverse merges into KATC. KATX shareholders will lose their KATX shares and receive KATC shares on a “one-for-one” basis (ie KATC is owned by the previous KATX shareholders in the same proportion as KATX was owned).

Why do this?

A. Moving off the pinksheets market will provide more transparency and thus reduced risk to shareholders for KATC. This should in turn help to attract new investors, increase the share price and then maintain it at those higher prices.

B. Moving the remainder of the KAT Exploration group off pinksheets and onto OTC/BB will impact positively on KATG and will prepare the group for future plans to uplist to the big exchanges such as AMEX or NASDAQ for example.

C. This will be a great way to reward loyal investors by providing an above market value cash/shareholding payment for their KATX shares. It also ensures that no naked shorting is present at the time because all KATX shares will be handed in and exchanged for KATC shares

5 days ago flag reply 0 Bob_Nordberg

Step 3. KATG submits a “friendly takeover” offer to shareholders to purchase KATC outright, which the KATC board of directors will recommend that shareholders accept. This offer will either be cash, shares of KATC….”””((((( THIS IS WHAT MAY BE THE ONLY PART WITCH RICK UK MAY HAVE HAD WRONG “I BELIEVE WE WILL RECEIVE CASH OR SHARES OR COMBANATION OF KATG…NOT C” ))))””” or a combination of both. As I understand it, the law relating to takeovers ensure that the value of any offer must be at least equal to the highest price over the last three months. Usually the offer is higher than this because it also reflects the forward potential of the company. My guess is that it will be a generous offer so that KATX investors are well rewarded for their support of the company through its initial stages. We shareholders would therefore end up with a higher value than we previously had in KATG shares and/or cash. The shareholders will vote on the offer. As the majority shareholders of course, Ken and Tim Stead will have the deciding vote and they will vote yes. KATC will become wholly owned (ie all shares owned) by KATG, and is no longer publically traded.

Why do this?

Here is where I struggle to understand the strategy. What would be the point of doing all of going through all the pain and expense of buying an OTC shell for KATX to reverse merge into, and then immediately afterwards stop trading as a publically listed company to become a wholly owned subsidiary?

The answer might lie in the fact that as an OTC/BB company, KATC would already be fully up to date with all SEC financial reporting requirements and this reporting could be continued even though the company was no longer publically traded. When the time was then right for the next step – public flotation onto one of the big exchanges – the financial reporting would be in place for this to happen smoothly.

All genuine thoughts from others about the above are much welcomed......"THANK YOU RICK UK FOR PLACING IN WORDS WHAT WAS COMPLATED, BUT NOW IS NOT......Bob Nordberg

5 days ago flag reply 0 Bob_Nordberg

HERE IS A QUOTE FROM RICK UK's POST ON I-HUB " This will be a great way to reward loyal investors by providing an above market value cash/shareholding payment for their KATX shares. It also ensures that no naked shorting is present at the time because all KATX shares will be handed in and exchanged for KATC shares"...poster..JB..must have stated emphatically a thousand times that FINRA was ....(the final say) on the matter of naked shorting....this was done in the face of Congressional hearings on the matter...(WE KNOW FOR A FACT HE WAS MISTAKEN)....Let's go back in timeshall we ...last spring 2009 KATX opened up for trading at 20-25 cents "OPEN = PRIVATE COMPANY GOIN PUBLIC"....then the stock ran straight to 2.00 PER SHARE! ...(( IN THREE DAYS ))....then we know that KATX needed $ FINANCING $ and went to a group from (( VANCOVER )) .....and they financed KATX in a 504...504= shares witch can be sold freely v restricted witch can not be traded for a period of time....are you following so far?....KATX recived assurances that KATX shares were not going to be DUMPED ="sold right away" in to the market from the FINANCIERS....AKA "EVIL DOERS"....then after the CFO interview "promo campain advertisment" which the financers aka "CROOKS" paid for.... VANCOVER "HOWE ST. BOYS"....IN VANCOVER ARE FAMOUS FOR RIPPING OFF SHARE HOLDERS aka "the little guy" " KAT EXPLORATIN WILL NEVER REPEATE THIS FUNDING MISTAKE...and the Company has kept that promice by the way"

5 days ago flag reply 0 Bob_Nordberg

....Well the 504 "FUNDERS"...over a year ago ....DUMPED ALL THERE SHARES IN TO THE MARKET ALL AT THE SAME TIME !!!.... Then I believe they continued to short kat down down down to oblivion.....Thhe CEO and that of his family put there Holmes up and Moraged them.((( KAT RESCUED )))..Had they not done this the NAKED SHORTING would never hae to "cover" = buy back borrowed shares...((( NAKED means the shares were never borrowed)))...and then in NOVEMBER when KATX released the ((( PR HUGE ZAMBIAN COPPER FIND ))) on the Bonivista ((( LUCKY PROPERTYS))) ....then in DECEMBER Kat bought the (TWILIGHT PROPERTY)...now back then we were hoping to have enough $$ to Drill the Handcamp Gold property...also remember it was then that VALE surounded the ((( ENTIRE BONIVISTA LUCKY PROPERTYS)))..This act of VALE stepping in I believe was the (((KEY))) KATX had been artifically pushed down to .001 (ONE % OF ONE PENNY "giveme a break!" ...THEN THE ((( BIG ))) turnaround...and when I say Big ...I mean ((( BIG ))) KATX RAN ONE THOUSAND FIVE HUNDRED % PERCENT % DURING THE MONTH OF NOVEMBER LAST YEAR!!! ...THIS HUGE MOVE UP IN PRICE (( CAUGHT )) MARKET MAKERS OFF GUARD....((( DO MAY REMEMBER EARLY JANUARY LAST YRAR MM NIGHT ((( REFUESED TO SELL NEW POSITIONS IN KAT STOCK ""but only quietly in europe?" ))) ...I DONT FORGET ...I DONT FORGET ...I DONT FORGET ...I DONT FORGET.I DONT FORGET ...I DONT FORGET....BUT YOU MIGHT ...SO I WILL REMIND YOU BECAUSE "I HAVE THE (( PROOF ))....I HAVE MANY MANY MANY REASONS TO THINK KAT WAS ( CRIMINALY ) SHORTED...I WILL KEEP REMINDING YOU SO YOU DO NOT FORGET!... "you know like peral harbor and 911" ...up untill the point Kat was being PUSHED DOWN and then NAKED SHORTED OUT OF EXISTANCE BY THIS VANCOVER GROUP..."sorry guys evil plan did not work"....I BELIVE ( TWO ) POSTERS ON THIS KAT BOARD KNOW WHO THIS FUNDING GROUP/CROOKS FROM VANCOVER ARE ...AND BY THE LOOKS OF THERE POSTING SINCE NOVEMBER....AND STATED STEADFAST REFUSAL TO PURCHASE SHARES "NON SHAREHOLDERS"....ONE WENT FISHIN ....THE OTHER ONE ...NOT SO BRIGHT...IMO....CAN YOU SAY SQUEEEEEEEEEEEEESE COMMIN!!!!!!!!!!!!!!! .......: Rick-UK Date: Monday, July 26, 2010 6:00:04 AM
In reply to: Rick-UK who wrote msg# 66416 Post # of 94265 ....

5 days ago flag reply 0 Bob_Nordberg

----NOTE----( UNDER THE AREA WITCH STATES THE NUMBER OF COMMENTS ), THERE ARE THREE CHOICES.......IT SHOULD HAVE "OLDDEST" COMMENTS CHOSEN :).....display: newest | oldest | popular ........THE POST WILL READ MUCH BETTER FROM TOP TO BOTTOM ...Bird Man Bob

5 days ago flag reply 0 AbrahamS

The company Birdman Bob is writing about is indeed a mining company which is pregnant with quintuplets and no artificial insemination was introduced, asked for, or used. I also have many, many shares in it.
That company has 362 square kilometer in Newfoundland which is already famous anyway for its rich mineral deposits and precious metals.
One of the eight properties KATX owns there, is a mine known as Handcamp. Kat Exploration has already found surface gold there, and has trenched the area and has drilled 12 holes deep into the earth. Every single one of the 12 cores removed from the ground at Handcamp, has GOLD in it. Again, 12 out of 12 cores have GOLD. Therefore, we are not talking about rhetoric or rumors or implications. Straight up and truthful and FACT only, Kat Exploration has a gold mine now there. That's why I have bought and not sold hundreds of thousands of shares while I gladly await further drilling and different drilling at one of the other properties KATX owns there, known as Rusty Ridge.
Currently, the price is ridiculously low because the stock is still only listed on the pink sheets as a penny stock. Any friend of mine who sees my post, or a friend of Birdman Bob's, or anyone who simply notices a stock with huge upside, should grab what they can immediately.
Repeat, this is not a rumor or a trick post. This company has produced the cores from drilling just done last month. Now that it is on CURRENT, many new investors will smell the coffee.
Good luck to all.

5 days ago flag reply 0 Bob_Nordberg

LET ME SUMMERISE ...KAT WAS SHORTED.....NAKED SHORTED......AFTER THE SHORTING IN NOVEMBER...EVENTS HAPPEND THAT MADE KAT TAKE OFF.....BUT TAKE OFF WROM WHERE IT WAS AT....WILL BE NOTHING COMPARED TO WHERE IT IS GOING!! ...I BELIEVE KAT IS ABOUT TO COMPLETE IT'S STATED GOAL "TO UPLIST".....WHEN THAT HAPPENS THE WS MARKET WILL BE FORSED TO TURN IN ALL THEIR SHARES FOR NEW ONES ....AND IF YOU DONT HAVE WHAT YOU (( MUST )) RETURN ...IT MEANS THAT YOU HAVE TO ((( BUY THE SHARES )))) COMPETING WITH US FOR THOSE SHARES = KABOOM !!

4 days ago



WE GOOD!!!