North Springs Resources (NSRS)
I’d hope after last week’s expose` on North Springs Resources, you’d be ignoring the pumper’s emails. But with the all-out blitzkrieg of hype from paid stock promoters, you may be tempted to buy some shares.
If you missed it last week, let me quickly recap NSRS for you…
North Springs Resources is a gold exploration company that has an exploration deal in Wickenburg, AZ just getting underway. In a press release on January 11th, the company’s president hopes to prove they’ll strike gold and said,
"We are confident that the planned exploration and drilling at Goldstar could quickly prove up the current 350,000 ounce estimate and provide us with enough data to make the decision to build a new mine and quickly go into production."
To prove their theory, the company had to borrow $1 million, at a 10% annual interest rate, to pay for the exploration phase of the project. NSRS has already committed over half of this million dollars to prove they might be right.
That sounds all well and good, but here’s something you should know before investing in NSRS shares…
Before they borrowed the money, the company had $16 in cash on the books. Yeah, not $16,000, or $160,000… but $16. That’s only enough to pick up lunch!
What’s more, NSRS is spreading their newly acquired cash a bit thin. North Springs has their original Nevada gold project (which isn’t producing gold) and the newly acquired GoldStar project in Arizona.
That seemed like well more than enough hype. But no, not for these guys…
NSRS just announced they’ve signed a letter of intent to invest more money in a gold project in Ghana!
Ghana?
Seriously now, what business does this little company in the US, with no revenue to support expansion, have trying to explore for gold halfway around the globe?
NSRS needs to leave the Gold Belt in Ghana to the big boys like Newmont and AngloGold. These multi-billion dollar miners have the revenue to spend on expansion and research into distant lands such as Ghana. Not some rinky-dink company with $16 in cash, no revenue, and a stock that’s pumped by paid promoters…
I don’t think I need to add anything more as NSRS has just given you a huge red flag to run away as fast as you can. North Springs is clearly reaching in a desperate attempt to find gold anywhere… anywhere at all. Their latest attempt to explore in Ghana proves it.
AI
