Since they are apparently still processing gravel, it would appear that the $127,000 IRS indebeture has been paid. Most likely it was unpaid SSI (7.5% employee deduction and 7.5% employer contributions). There were also a bunch of unpaid MSHA fines which when unpaid get turned over to the treasury department for collection. After the conference call there was a lot of hoop-de-doo about how confident many were with Rob. I expressed some doubts then and got lambasted for it. I find it difficult to have a lot of confidence in a management team that fails to report a $170,000 debt to the IRS six months after the fact.
There's also is a lot of confusion about the 45% discounted debt conversion. Rob sold a note his company was owed by PCFG. Rob's company got money; PCFG had already gotten the money when it was loaned. PCFG (shareholders) got stuck with having to issue 150 million shares to cover the conversion. The point is that there was no infusion of cash into the company with the debt conversion. If they are going to raise additional capital they'll have to issue new debentures.
Their lack of a 43-101 compliant report also bit them in the butt with the SEC and they can't list reserves or estimates as a result. For FWF and TJ who like doing research Rob had some connection with Platro West at one time; I wonder if he still does? They're the ones who sued for 15% of the Blackfire deal.
Some of the optimism on this board is admirable seeing that there is not much of a factual basis for it. Oh well, another buying opportunity. \V/_
