Another interesting bit of info:
CMKX-The Ink Is Still Wet On The Stock Certs...
Ink Is Still Wet On The Stock Certificates
By CAROL S. REMOND
A Dow Jones Newswires Column
NEW YORK -- This is almost the equivalent of printing money in your basement.
Two tiny Pink Sheets companies announced a joint venture Thursday that gives one company a small stake in the mineral claims of the other -- mineral claims that so far haven't yielded any diamonds, which is what one of the companies says it is drilling for in Canada.
So, what's the value of the transaction?
CMKM Diamonds Inc. (CMKX) will receive $10 million for giving up the 5% stake in the mineral claims to St. George Metals Inc. (SGGM).
But here's the real kicker. CMKM Diamonds will also receive 200 billion shares of St. George Metals' restricted stock. St. George's shares were changing hands at 6.5 cents a share. True, a very small amount. But that places a value of $13 billion on the shares that CMKM Diamonds will receive.
And, it helps place a value on the CMKM's mineral claims. If 5% of the claims are worth $13 billion, then the total claims would be worth $260 billion.
Right.
Both of these companies should hope that their drilling prospects are as successful as their stock minting abilities. A couple of months ago, an "In The Money" column revealed that CMKM Diamonds had 400 billion shares outstanding. The corporation department of the state of Nevada said Thursday that CMKM raised the amount of shares authorized to 800 billion shares from 500 billion in August.
It's unclear just how many shares of St. George Metals are outstanding at this point. Mark Giebelhaus, a man listed as president of St. George Metals on the company's incorporation document in the Nevada corporate database, wasn't immediately avalaible for comment. Pacwest Transfer Inc., St. George Metals' transfer agent, wasn't able to provide any information about the company's shares because the firm's computer was down. But Nevada officials said this company has 950 billion shares authorized as of July 19.
Urban Cassavant, CMKM diamonds' president and large shareholder, told Dow Jones Newswires that he expects St. George Metals to issue a press release about the deal soon. Asked about the fact that St. George Metals appears to have had no business over the last two years, Cassavant said he had nothing to do with St. George and doesn't know anything about it being a dormant shell. Saying he recently had a stroke and didn't feel well, Cassavant declined to answer further questions and hung up.
There is little information available about either company because they are trading on the Pink Sheets and do not have to file any financial information with the Securities and Exchange Commission.
A note on the Pink Sheets website says that St. George Metals has had no ongoing business operations since November 2002, which raises the question of where the company is coming up with $10 million to pay to CMKM Diamonds.
We have an idea where the shares involved with the transaction are coming from ...
(Carol S. Remond is an award-winning columnist and one of four who write the "In The Money" feature. Most recently, she shared a 2003 Best of Business Award from the Society of Business Editors and Writers for her role in Dow Jones' team coverage of the Canary Capital mutual fund trading scandal.)
---By Carol S. Remond; Dow Jones Newswires;
:mad: What do we make of this new? UC acts as if has no of history SGGM and the fact that this company has been dormant for 2 years. Claims he had a stroke and doesn't want to talk out the venture with SGGM.
Also ,how does CMKX get effected if UC did have a stroke. We need answers and we need them know. :mad
