"The Company also announces that it has entered into a loan agreement to borrow $400,000 over a 6-month period. The terms include interest at the rate of 10%, cumulative monthly, and the issuance of a bonus of 800,000 shares at a deemed price of $0.05 per share, subject to regulatory approval. There are no warrants or finder's fees involved in this transaction. A security agreement has been completed, and the funds for the loan will be used for operating capital. "
When I look at SEDAR filings... they show a deal was done for the 800,000 shares... but, they're said to have been sold at $1 a unit, including a bunch of warrants ?
Am I just not seeing it ?
Something here doesn't add up...
Granted the numbers from back in October are pre-reverse numbers... but the latest SEDAR financials appear not to come close to agreeing with the prior announcement... re the deal being for $400K in debt (at 10% compounded MONTHLY !!!) with the shares being sold for $0.05 pre-reverse that would have been "at the market". It looks like they did some sort of sleight of hand with those shares in the reverse, to convert those pre-reverse shares into post reverse shares... ???
I see other flow through financing done at $0.25 per post reverse share or better..
If they sold 800K shares for $800K... where did the $800K come in, and where did the $800K go to ?
Otherwise, beyond having concern that they're squatting on quality properties while not doing anything much with them, beyond basic maintenance ? They've got some quality properties they're squatting on, but, the management effort SUCKS...
It looks like ALL they are doing is squatting on those properties, and have basically either ZERO intent to move them forward to production, or ZERO capability.
The filings suggest they don't even intend to TRY to do anything with them before 2015...
Management touts they're experience... which seems it must mean they have 5 or 6 other companies that take all their time, and get all their attention... because they're doing NOTHING with what "Silver" has...
Looks like a classic case of a "do nothing" management, to me.
I'm not saying they're not capable...
I'm saying it appears they don't INTEND to perform...
They appear to be "exploring" at a pace that is sufficient to allow them to say they're doing more than nothing... but what they are doing isn't a hell of lot more than nothing.
I'll keep a close eye on this... expecting to see future efforts with assets being transferred out to others at prices well below value...
I don't see how else they intend to make money here, doing what they are... so, "squatting" on the properties, and suppressing the value that exists to enable taking it at well below value, and well below cost... seems the most likely play to watch for.
A quick look suggests to me that the "mystery deal" was intended to, and perhaps did, sell post reverse shares for $0.05 in the deal for 800K shares... perhaps consistent with the bit above about the purpose in suppression ?
They've done the reverse, and then diluted by 20% for basically nothing...
They're sitting on past producers that stopped producing while still in ore... and yet they drill holes that show continuation of structure, but that don't have (or report) values in them ?
Looks to me like they're TRYING to get this thing down to $0.05 or below before "doing something" with it... but, then, you can't expect that what they do with it then will prove to be useful to investors ?
Compare what they're doing now with the Slocan camp to what's happening now with USSIF and Soros' old partner working on revitalizing the Silver Valley in Idaho... and all it can suggest is that the guys at KLSVF have their heads stuck somewhere dark.
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