South America has been metal mining for four or eight centuries. In the sixteenth century the Spanish Armada used to send vessels laden with mercury, cask after cask, to south and central America for use in the "patio process" of gold extraction.
Mining metals in South America ain't exactly rocket science. They already know what a hole in the hill is worth.
POTG announced they were closing a deal on Peruvian mining concession(s). A concession deal to mine in Peru is like inking a deal with the ballpark to sell weenies, is it not?
A deal-signing announcement from POTG would without a doubt send their company value up and the market price of their shares would soar.
Fair to say that most POTG investors anticipated the deal close on the concessions to be a dramatic price increase of POTG shares. It is also fair to say POTG sealing of the mining deal concessions was the next big corporate event to look forward to, or so we thought.
That's what makes this forward split impossible to figure out. POTG investors are naturally concerned by the potential that POTG is a resurrected "shell" company, and the exchange of old shares to new has been perceived as a wicked twist of fate similar to what happens when somebody gobbles up the old shares then controls a new company.
For those who hold knowledge about the "shell company" angle there really is no reason for POTG to fuel negative speculation by forcing holders to surrender their shares for whatever is behind door number three.
The timing and hastiness of the forward split announcement did not make any sense at all especially since the PR department of POTG had already whetted the appetite of new investor interest with the next big corporate event, the mining concession signings.
POTG is not helping matters by suggesting that a forward split is the same thing as a dividend. Such split can easily be preceived as another step toward getting POTG off the radar screen.
