DD Support Board and Research Team

[Cobra Kai]

Somewhat of a strange company- at one time traded in the $2-3 range always lots of talk of gold but never really produced much if any. I was very bullish on the most recent PR as an entry point with all the insider buying but Im not sure what to think- I havent seen much about the buyer Mangnolia Hill Resoureces and if they have the ability for such a purchase.

HMNC-The company has been busy acquiring equipment and insiders purchasing of shares while increasing executive salaries along the way.. The company trades close to book value with a decent amount of asets but very limited cash- which is strange that they basically emptied the company back account on equipment and never produced any gold?? mismanaged? stealth mode scam to enrich insiders and look busy.. doesnt seem like a bad value present day but it begs the question why no gold ever?


Past 500k promo in 2011-It seems they put together some private placements so the promo videos and marketing could have been to lure in potential financial backers.

See some of the promo videos below

Insider buying-

Shares
Bought
720,000

sold
0Gross
720,000Net
720,000

Aim High Profits also covered this company with a somehwat favorable article based on assets and a potential buyout- I tended to agree that the company had insiders buying and decent assets Heres a link to the write up
http://www.aimhighprofits.com/hmnc-buyout-offer-for-hondo-minerals-worth-376-gains-21406

I noticed that HMNC company attorney is The Zouvas Law Group located in San Diego
Luke Zouvas
Zouvas Law Group

2368 Second Avenue
San Diego, CA 92101

Just a coincidence the buyer also has a key member connected to Zouvas it appears also located in San Diego

Mark Zouvas
Oil & Gas Development Greater San Diego Area | Oil & Energy Current: Manager at Magnolia Hill Resources Education: University of California, Berkeley Summary: Broad experience in the management and administration of start-up companies, with an emphasis in the energy sector. Primary focus centers around ...

About Magnolia Hill, LLC

in San Diego and requests can be directed to [e-mail].

Somewhat strange as the potential buyout was apparently unsolicited?

Here is part of that PR
CHLORIDE, AZ, Nov. 26, 2012 /PRNewswire/ - Hondo Minerals Corporation (HMNC) today announces that on Tuesday, November 20, 2012, Hondo Minerals received an unsolicited offer to purchase all of the Company's common stock and assets. The offer as presented was for $0.62 per share in combination of cash and in stock. The letter of intent is subject to due diligence by both parties. Other requirements of the letter of intent included:

Hondo Minerals complete a 43-101 reserve report relating to the minerals at the Tennessee Schuykill Mine property in Chloride, Arizona which is to be prepared and issued by an independent third party.
Verification of the E-Leach technology as a process relating to the leaching of precious metals.
Verification of the status of rights regarding patents covering the leaching process.

The Company's Board of Directors approved a Letter of Intent ("LOI"). The parties will negotiate the terms and prepare the Definitive Agreements that will govern the proposed purchase and agree to use all reasonable efforts to complete the foregoing within the next 120 days.

Bill Miertschin, CEO of Hondo Minerals says, "Other companies and industry professionals are now recognizing the value of our properties, our resources, our equipment and our facilities, as well as our technology and our processes. The path of Hondo Minerals is to independently verify and professionally categorize our assets and our technology. While this process takes place we will continue look to stream line operations, analyze and improve our process and generate additional income from the sale of precious and non-precious metals