Allstocks.com's Bulletin Board Post New Topic  Post A Reply
my profile login | register | search | faq | forum home

  next oldest topic   next newest topic
» Allstocks.com's Bulletin Board » Asia, China and Canadian Stocks » CMKX

 - UBBFriend: Email this page to someone!    
Author Topic: CMKX
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
For those who are following this one, and there are a few.
CMKX traded $80 million worth of stock in the first three weeks of June.
Average trade is 2.5 million shares with a value of $2000 US.
Obviously this is a pretty popular stock.

Generally, I do not like micropennies. Pennies are risky enough.

The Saskatchewan diamond play has been going
on for 10 years now and no economic kimberlite pipes have been found.
Shore gold had a run recently but has not properly disclosed the nature of the big stones they have found. They may be industrial grade diamonds.

CMKX is a stock for short term traders, in my opinion.

There is an article by Will Purcell I will try to paste on here, but it may be too long.

[This message has been edited by northernprophet (edited August 13, 2004).]

[This message has been edited by northernprophet (edited August 13, 2004).]


Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
In general, I do not like companies that trade solely on the pinks or otcbb.
The reporting standards are not as tough as the other US and CDN exchanges. The companies can more easily deceive investors with "creative" news releases.

Also, the Saskatchewan diamond play keeps getting resurrected by companies that rehash old plays, that were proven to be uneconomic.
Also, it is tough to figure out how many shares CMKX has outstanding.
Must be billions.


Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
Will Purcell June 22

Four junior explorers managed to create quite a market stir with their diamond hunt in central Saskatchewan, but most of the attention has been garnered by Urban Casavant's swinging Pink Sheets promotion, CMKM Diamonds Inc. A CMKM share could be had for just one-100th of a U.S. cent though much of this year, but word of a diamondiferous kimberlite discovery near Smeaton had the company's faithful shareholders dreaming of dollars and a future beyond the mighty pinks, as trading volumes frequently topped the 10-billion mark and CMKM's shares crested above a glorious one-10th of a U.S. cent.

The enthusiasm cooled a bit last week, after more substantial news about the Smeaton find was produced by CMKM's two Canadian-listed partners, Rick Walker's United Carina Resources Corp. and Consolidated Pine Channel Gold Corp. Those diamond details initially proved unsettling to quite a number of CMKM's investors, but the company's microscopically priced shares found their second wind and still trade well above their recent range.

CMKM's Smeaton play began in March, when the company signed an agreement that would allow it to earn a one-quarter share in the property from Mr. Walker's two companies, along with U.S. Canadian Minerals Inc. Interest in the project took off about a week later, when CMKM touted what it called a "new kimberlite discovery" on the Smeaton property.

CMKM proclaimed that its Carolyn pipe was diamondiferous late on June 10, and with the markets closed the following day to mourn Ronald Reagan's passing, there was a rush of speculators trying to hop aboard Mr. Casavant's diamondiferous Smeaton bandwagon indirectly, by investing in CMKM's two Canadian-listed partners.

Those plans hit a big snag when the TSX Venture Exchange halted the shares of United Carina and Pine Channel, citing an imbalance of material information. The exchange also cancelled all of the day's trades, washing away some significant gains, due to the lack of solid news -- at least as "news" is defined by the bureaucrats at the TSX-V.

That imbalance was ultimately corrected when Mr. Walker's diamond juniors subsequently revealed that the Carolyn core samples were just marginally diamondiferous. One 40.1-kilogram sample had produced two tiny microdiamonds that apparently weighed just 0.000005 carat, a fraction even smaller than CMKM's recent share price.

Meanwhile, 11 other Carolyn samples had failed to produce any diamonds. There was no indication of just how much those barren samples weighed, but if they were comparable with the one diamondiferous batch, the Smeaton partners would have recovered just two microdiamonds from over 400 kilograms of Carolyn kimberlite.

Those details presented a far gloomier outlook for the pipe than had CMKM's brief proclamation that the lab results had confirmed Carolyn was diamondiferous, leaving a number of the company's more exuberant faithful to speculate loudly that the Canadian news had been faked. Based on earlier work on the Smeaton play, there should have been few surprises in any of the recent results form Smeaton.

In fact, it would have been quite a shock had CMKM's drill program failed to intersect kimberlite, as its drill holes were apparently positioned in an attempt to retest a kimberlite pipe that had first been hit in 1996, when a group led by Swannell Minerals Corp. scored a kimberlite hit by drilling a geophysical anomaly that was about 200 metres in diameter. As a result, what CMKM now calls its new Carolyn pipe is actually the old Smeaton kimberlite.

Swannell intersected kimberlite at a depth of 128 metres and ultimately cored over 90 metres of kimberlite in its RS-1 drill hole, so it was hardly a great surprise when CMKM's drill hit the top of the pipe at a depth of 125 metres and ultimately intersected about 130 metres of kimberlite. Three subsequent CMKM drill holes produced intersections that ranged from 63 metres to 75 metres thick.

Most of the kimberlites in Saskatchewan have proven to be diamondiferous, so it also seemed likely that there would be at least a mild smattering of microdiamonds in the pipe, whatever its name. Still, there was not much chance that the reincarnated Smeaton kimberlite would deliver a bounty of micros as Carolyn, based on the earlier test. Samples of Swannell's drill core had been sent for analysis, but no diamonds were recovered from a modest amount of kimberlite.

The Swannell group subsequently abandoned the Smeaton project and it was snapped up by United Carina and Pine Channel. Late in 2000, the new partners poked four holes into a series of anomalies that had been identified in close proximity to the old Smeaton pipe. A narrow zone of reworked kimberlite was encountered in one of the holes, but the remainder failed to produce any kimberlite hits and the Smeaton play began to gather dust once again.

In 2002, United Carina and Pine Channel managed to come up with a new partner on the play. Panterra Exploration Corp. decided the play had enough promotability to warrant a look, and it signed an option deal on the project. Panterra's promotion delivered a few opening salvos, but the company did not manage much in the way of exploration, and its option was subsequently abandoned. That left Mr. Walker's companies to hunt down a new partner for the struggling Smeaton project.

The arrival of Mr. Casavant and CMKM has made the old Smeaton play a hot topic with speculators once again, although the market reaction to United Carina and Pine Channel's side of the Smeaton story has been modest in comparison with CMKM's decidedly pink promotion, due to the presence of at least a minimal set of reporting standards on the TSX-V.

Although some speculators may have been skeptical about CMKM's motives in repackaging the old Smeaton kimberlite as the Carolyn pipe, further work had been recommended on the old find, as the initial investigation had been deemed insufficient. As well, additional work was proposed for the remainder of the Smeaton property, in the hope of properly defining some new drill targets.

The Saskatchewan diamond play has been attracting investors since the late 1980s. There currently are two advanced projects that have at least a shot at being economic, both of them in the Fort a la Corne region, about 30 kilometres to the south of Smeaton.

Shore Gold Inc. is now working on a 25,000-tonne bulk sample of its huge Star kimberlite, which could prove or kill the project. The company previously processed about 140 tonnes of material from one large drill hole, coming up with a grade of a bit over 0.06 carat per tonne.

Shore is hoping to produce at least 3,000 carats from its test, which would require a grade of about 0.12 carat per tonne, and in its more exuberant moments, the company has touted the possibility of coming up with at least 5,000 carats, or about 0.20 carat per tonne. The first results are expected soon.

A group led by De Beers Canada Corp. and Kensington Resources Ltd. has been busy testing the mammoth No. 141/140 kimberlite complex for several years. The partners have come up with an average grade of about 0.07 carat per tonne, based on a cumulative 2,400-tonne sample, with signs of a somewhat higher grade in portions of the pipe, which appears to be larger than the Star complex.

The latest diamond counts from No. 141/140 provide a reasonable basis for comparison with the CMKM results, and offer an indication of what would reasonably be required for a large kimberlite to demonstrate a reasonable degree of economic potential in the Smeaton area.

De Beers and its partners recovered 1,159 diamonds from 595 kilograms of kimberlite, or nearly two stones per kilogram. That was nearly 40 times greater than the rate that the one diamondiferous Carolyn sample had produced diamonds, and it may have been nearly 500 times greater when the 11 barren batches are added in.

Indications of larger stones are of greater importance than raw diamond counts in evaluating kimberlites, and there were some macrodiamonds in the No. 141/140 samples. Six of the diamonds were large enough to be recovered by a 0.425-millimetre sieve, including two that sat on a 0.85-millimetre mesh.

Not included in those counts is a 5.5-millimetre, 0.77-carat stone that had been found during the preparation of the sample. Meanwhile, the two diamonds recovered from the Carolyn sample had been recovered on a 0.106-millimetre sieve.

CMKM still has not matched Mr. Walker's more detailed diamond disclosure, but the company is still busy issuing news about less material matters, including the shutdown of its message board. The board was being used by unsavoury persons to sling racial slurs, said Mr. Casavant in a press release that read more like a typical message board offering, with the liberal use of capitalized nouns and multiple exclamation marks.

Entertaining press releases are not the only unusual quirk with CMKM. Last fall, the company retired large blocks of its shares, and although the exact number is far from clear, it appears that roughly 20 billion of its shares were retired in a series of moves that came just a few months after the company had declared a 2-for-1 split of its shares.

Just how many of CMKM's shares are issued is another unknown, but whatever the number, there is no doubt that the company's abundance of shares are in both great demand and great supply. Nearly 124 billion of them were traded through the first three weeks of June, worth a total of over $80-million (U.S.). A typical CMKM trade was for just over 2.5 million shares and was worth an average of just under $2,000 (U.S.).

Over the same stretch, the gross value of all trades of Aber Diamond Corp., Canada's premier diamond company, was barely $70-million (U.S.).

CMKM was unchanged on Monday, closing at six-100ths of a U.S. cent. United Carina was also unchanged, closing at 18 cents and Pine Channel dropped one-half cent, ending the day at 8.5 cents.


Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
Actually its been confirmed that CMKX has about 483 billion shares out based on their dividend info as per UCAD shares. Ucad is another strangely overvalued company- they were Barrington Foods ( an unprofitable food company) until Jan 04. They had 408$ in the bank and no revenues as of their last Q report.Given that CMKX got 7.5 million shares of Ucad to give away as dividends that means CMKX owns nearly half of UCAD unless more dilution has taken place which has not been filed with the SEC. That gives CMKX a market cap of around 200 Million $- not bad for a company with no revenues, no diamond discoveries( other than a few slivers out of 20 holes) and they own no land. Seems like a bit of a lofty price to me.
Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
Yes, I heard that number as well. I thought Nortel was bad with 4.3 billion.

483 billion shares divided by the population of earth (6.5 billion people)

That means about 75 shares per person on earth.


Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
Wallace#1
Member


Member Rated:
4
Icon 1 posted      Profile for Wallace#1         Edit/Delete Post   Reply With Quote 
Nice to see at least two more people posting some sensible information.

northernprophet, have you ever put Will Purcell's stmt on the other CMKX thread? You will probably get smacked, but I think it is needed there as well.


Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
I never realized that the thread was so huge on the micropennies board. Look, the whole purpose of pennies is to buy a cheap stock with lots of upside potential.
The market cap of CMKX is near $200 million US.
NOT A CHEAP COMPANY.
There are some great companies with real profits and earnings worth $200 million.

I will not bother to post Purcell's article, the pumpers will be all over me like a wet blanket.


Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
Also, when you see a guy end his post with
"God bless you all." , run for the hills.

There may be a few who are sincere, but in my travels I have come across many scumbags who pretend to be Christians in order to suck other people in to their promotions.



Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
Have you guys ever heard of a site called www.stockpatrol.com

It is pretty interesting.


Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
Wallace#1
Member


Member Rated:
4
Icon 1 posted      Profile for Wallace#1         Edit/Delete Post   Reply With Quote 
northernprophet,

LMAO at your 16:11 post. NO TRUER WORDS!!!
They sure do beat up on me there, but I don't much care since I think I know what I am talking about. I must learn to cut, copy, paste, etc. so I can move Purcell's statements there...am use to their cutting me up. Hope you don't mind if I do not say where I got it...then you won't have to worry about getting knocked.

Yes, know about stockpatrol. On the CMKX thread they (the pumpers) refer to Bernstein as a crook. Guess you know why.

I have been thinking of trying out a few Canadian stocks. Anything you would recommend and then I could do some DD on?
Sure would appreciate. Would like a couple pennys or sub-pennys. Thanks.


Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
The Yellow River Gold mine and Gemm are basically worthless from what I read into the UCAD findings. Only place you can find info on GEMM and Yellow River is in the UCAD filings.--Here is an excerpt from their last 10Q.
Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
. Only place you can find info on GEMM and Yellow River is in the UCAD filings.--Here is an excerpt from their last 10Q.March 22, 2004, the Company, by and through Juina Mining Corporation, acquired an 80% interest in the Yellow River Mining, S.A., an Ecuador corporation, in exchange for 5,000,000 shares of the Company's restricted common stock. Yellow River Mining, S.A. holds legal rights and claims to gold mining operations in "Provincia Del Oro" [Province of Gold] in southwest Ecuador. The area is well known for gold mining operations that have been carried on there since the 1600s. However, the present mining operations are rudimentary and much of the mining work is done by hand. Very little modern mining equipment is available or used. No aerial surveys, mini bulk sampling or full bulk sampling have occurred on the property. An independent expert geologist has not proved up the area as a reserve or a resource. No equipment exists on site or otherwise owned or controlled by the Company, that would allow full scale development of the mine should it satisfy all conditions precedent to it being determined to be a resourc e. Thus, in order for the Company to develop this asset, financing will have to be acquired in order to satisfy the conditions precedent for full-scale mining to occur, and there are no guarantees that the Company will obtain such financing.


-16-

--------------------------------------------------------------------------------
On May 7, 2004, Company representatives Rendal Williams and Alejo Bermudez traveled to the Yellow River mine to conduct an inspection. Neither man is a qualified geologist able to assess the potential of the land to produce gold or the amounts of precious metals that might exist there. However, after reviewing the operations for approximately five days, Mr. Williams and Mr. Bermudez returned bringing with them samples of gold removed from the Yellow River mine. This ore has not undergone independent testing to determine its purity or karat weight. Additionally, Yellow River is to forward dore bars of gold bearing ore are to be transported to the Company in due course for further examination and evaluation by the Company. It is also noteworthy that the Company undertook due diligence, and reviewed prior to acquiring Yellow River, documentation regarding the legal rights of Yellow River to the mining area, and Yellow River's legal status and capacity under the operative Ecuadorian legal documents.
Costs to implement this plan may be significant, since the land parcel is located in Ecuador. Presently, the Company does not have the wherewithal to financially support the development, but may if adequate debt or equity financing arrangements can be made. Further, the fact that the subject property is in Ecuador presents some potential problems for the Company should legal disputes arise between it and the Ecuador government, or Ecuadorian third parties. Potential trouble areas may include issues related to environmental regulations often governed by international treaties such as the "Andean Pact," the "Pan American International Convention," and the "Paris Convention" of 1883. Civil disputes between citizens and/or entities of different countries are often governed by procedures and laws developed under the above noted and other international treaties. Presently however, there are no such disputes or legal issues that are germane to this discussion or filing.


Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
Doesnt exactly jump out at you as a screaming great deal does it?
Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
Seems the Govt of Saskatchewan puts a taxon mineral claims. CMKX claims to have over a million acres of mineral rights.-The Mineral Taxation Act provides a mineral tax to be levied against all owners of mineral rights. An individual is taxed only on the mineral rights owned in excess of 3200 acres. All mineral rights owned by corporations are taxable, with exception of those minerals within the corporate limits of cities, towns and villages and minerals underlying railway right of ways and cemeteries. In addition, an exemption from tax is available to farm corporations which meet certain guidelines.


Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
Seems it would be quite easy to find the mineral rights for this area by contacting the Saskatchewan Mineral Rights agency. I may make some inquiries tomorrow to satisfy my curiosity.I highly doubt that they hold over a million acres of mineral rights and pay the taxes on these.But I could be wrong and the proof should be quite easy to come by.
Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
To Wallace#1:
I may have a good junior oil/gas pick on Wednesday. Also, I believe the junior golds will have another run in the fall.

Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
Wallace#1
Member


Member Rated:
4
Icon 1 posted      Profile for Wallace#1         Edit/Delete Post   Reply With Quote 
BCmouser,

If you find out anything on those claims, I sure would like to know.

northernprophet,

Looking forward to hearing from you today.
Thanks.


Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004  |  IP: Logged | Report this post to a Moderator
northernprophet
Member


Member Rated:
4
Icon 1 posted      Profile for northernprophet     Send New Private Message       Edit/Delete Post   Reply With Quote 
Wallace#1, I may be a little late on my next pick. I will have some info by Friday for sure.
I am just waiting for September to roll around and everyone to get interested in the markets again.
In Canada, there are really no micropennies, once a stock gets down to that 2-3 cent level, watch out. But I have seen some miracles.
I personally like the pennies in the 10-25 cent range. Many great runs seem to have started from that level.
Also, I like companies that have been at $3,$5, and $10 before, and have crashed back down, and have undergone a 1-3 year low volume accumulation bottom.

Posts: 268 | From: Edmonton, Canada | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
Wallace#1
Member


Member Rated:
4
Icon 1 posted      Profile for Wallace#1         Edit/Delete Post   Reply With Quote 
Northernprophet,

Other than my real retirement accounts, it looks like we like the same price ranges of stocks. At least they are more likely to have financials and have reporting requirements.

If any of you guys run across an owner of Nevada Minerals or IB2000, sure would appreciate hearing. They are private companies with claims in the Fort a la Corne area of Saskatchewan area. It looks like on a combined basis they might control UCAD. They are Nevada corporations and owned by the same person/people.

[This message has been edited by Wallace#1 (edited August 17, 2004).]


Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004  |  IP: Logged | Report this post to a Moderator
tradingpennys
Member


Rate Member
Icon 10 posted      Profile for tradingpennys     Send New Private Message       Edit/Delete Post   Reply With Quote 
Wallace ...
You sneaky devil! lol

Posts: 415 | From: CA | Registered: Jun 2004  |  IP: Logged | Report this post to a Moderator
Binky
Member


Rate Member
Icon 1 posted      Profile for Binky     Send New Private Message       Edit/Delete Post   Reply With Quote 
quote:
Originally posted by Wallace#1:
Northernprophet,

If any of you guys run across an owner of Nevada Minerals or IB2000, sure would appreciate hearing.

[This message has been edited by Wallace#1 (edited August 17, 2004).]



============================================

LAS VEGAS--(BUSINESS WIRE)--Jan. 26, 2004

Nevada Minerals Inc. announced today that the company has acquired an interest in a significant, multithousand-acre mineral claim located in the Candle Lake area of the province of Saskatchewan, Canada. Company President John Dhonau stated, "We are in the business of supporting small mining businesses that lend themselves to joint venture opportunities. We look forward to having additional acquisitions of this type to announce in the future." More details regarding today's Candle Lake project will be forthcoming as warranted.

About Nevada Minerals Inc.

Nevada Minerals Inc. is a privately owned Nevada corporation, in the business of acquiring mineral claims, mineral rights, mining facilities and processing operations in the precious and semi-precious metal industry.

Also check here....... http://sos.state.nv.us/begin.asp

[This message has been edited by Binky (edited August 30, 2004).]


Posts: 75 | Registered: Jun 2004  |  IP: Logged | Report this post to a Moderator
Wallace#1
Member


Member Rated:
4
Icon 1 posted      Profile for Wallace#1         Edit/Delete Post   Reply With Quote 
Thanks, Binky, but I already knew that. As opposed to Pres/CEO, I am looking for the names of the actual owners of the privately owned companies of Nevada Minerals and IB2000. Am almost 100% sure they are the same owner(s).

tradingpennys,

At least the people on this thread do not seem to be wacked out! LOL


Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
from the STOCKPATROLImagine it was spring again, and time to clean out all of the useless items you had accumulated over the past years - all of those beanie babies, trolls, and pet rocks that you have been collecting. But instead of tossing them in the trash, you swap them with your neighbor, who has an equally dubious set of stuff cluttering his closet.


Now imagine that you and your neighbor agree that you are not trading junk at all, but valuable items of infinite worth. Does that make the items valuable?


CMKM Diamonds, Inc. (Pink Sheets: CMKX) has been on a trading spree. The Company, which has yet to uncover marketable diamonds or other revenue generating gems and ores, has been busy trading interests in its claims with other financially challenged mining companies. UPDATE: CMKM DIAMONDS, INC. - CONCENTRIC CIRCLES. In its search for a silk purse - or is that a diamond studded handbag - on September 2, 2004, CMKM announced a joint venture agreement with another struggling Pink Sheet company, St. George Metals, Inc (Pink Sheets: SGGM).


According to the September 2nd press release, St. George Metals has agreed to purchase a 5% interest in all of CMKM's mineral claims. In return, CMKM says it expects to receive $10,000,000 Dollars and two hundred billion (200,000,000,000) restricted shares of St. George stock. CMKM claims that it already has received the first $2,500,000 payment and anticipates three additional $2,500,000 payments by October 2nd.


The terms of this transaction place a rather curious valuation upon the assets of both companies. Investors can only guess at the value of St. George - or the state of its operations. The Company ceased filing public reports with the SEC in November 2002. When it last filed, St. George declined to provide detailed financial information, instead conceding that its "financial resources" had been "substantially exhausted" and that it had no ongoing business operations.


We have discovered no public information that would suggest St. George's fortunes have improved these past two years. The Company has not issued any recent press releases indicating new funding or renewed operations. Consequently, there is no way to determine how the financially exhausted company may have accumulated $10 million - or why it would devote such valuable resources to acquiring an interest in CMKM.


Despite this lack of information, investors responded to the CMKM announcement, driving St. George stock from $.01 a share on September 2nd to $.07 a share on September 3rd - a 700% increase for a Company whose financial condition and business remain a complete mystery.


The transaction also created a valuation for CMKM that is hardly supported by the Company's track record. If St. George was prepared to pay $10 million in cash, and deliver stock valued at $2 billion on September 2nd (and $14 billion on September 3rd) for a measly 5% of CMKM's mining interests, did that mean CMKM's claims were worth roughly between $40 billion and $280 billion?


That hardly seems likely. Remember, CMKM has yet to dig up any marketable diamonds.


The St. George alliance followed several similar swaps between CMKM and obscure mining companies searching for the mother lode - albeit unsuccessfully, at least so far. In one of those transactions, CMKM announced that it would sell 5% of its mining claims to U.S. Canadian Minerals, Inc. (OTCBB: UCAD) in exchange for 7.5 million shares of U.S. Canadian stock. UPDATE: CMKM DIAMONDS, INC. - SHARING SHARES. That sounds like a bargain, considering the price paid by St. George for a similar interest. The price of U.S. Canadian shares at the time of that deal was approximately $4.80 a share - CMKM practically gave away the 5% interest for a mere $36 million worth of stock.


Then again, where are the diamonds?


And there was more. CMKM also gave U.S. Canadian a one year option to acquire an additional 10% of CMKM's mineral claims for $15 million in cash. On July 27, 2004, CMKM announced that it had received $3 million from U.S. Canadian, representing a partial exercise of the option.


On the surface it seemed unlikely that U.S. Canadian would be able to come up with the necessary funds. Unlike CMKM and St. George, U.S. Canadian does file periodic reports with the SEC - the price it must pay to preserve its listing on the OTC Bulletin Board. Those reports suggest that U.S. Canadian faces considerable financial challenges. As of March 31, 2004, U.S. Canadian had $408 in cash, no current revenues, and concerns about its ability to continue as a going concern.


Matters hardly improved in the third quarter of 2004. As of June 30, 2004, U.S. Canadian had $1,321 in cash, no revenues, and cumulative losses of $17.7 million. So where did U.S. Canadian get $3 million - and why would it invest those precious funds in CMKM?


The answer can be found in U.S. Canadian's Form 10-Q financial report for the quarter ended June 30, 2004. According to the Form 10-Q, U. S. Canadian agreed to sell 600,000 shares of its stock to an unnamed party related to CMKM at $5 a share. The $3,000,000 received by U.S. Canadian from that transaction was then paid to CMKM.


In other words, an individual related to CMKM funded U.S. Canadian's investment in CMKM - just one more swap in this series of intriguing transactions.


And what of the money paid to CMKM by St. George? Was it raised in a similar fashion, by funneling shares to a "party" associated with CMKM? Unfortunately, in the absence of public filings, investors will have a difficult time finding the answer to that question.


But regulators should be able to get those answers - if only they bother to ask.


Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
St. George Metals revived to join pink sheet promotion

2004-09-16 09:12 ET - Street Wire

Also Street Wire (U-CMKX) CMKM Diamonds Inc
Also Street Wire (U-UCAD) US Canadian Minerals Inc

by Lee Webb

St. George Metals Inc., a recently revived Nevada-incorporated shell that can trace its lineage to the former Vancouver Stock Exchange (VSE), has become the latest patron of Urban Casavant's pink sheet company, CMKM Diamonds Inc. St. George will ante up $10-million (U.S.) and a whopping 200 billion restricted shares for a five-per-cent stake "in any and all mineral claims" held by CMKM. (All amounts are in U.S. dollars unless otherwise indicated.)

As with many things involving CMKM, exactly how many mineral claims the company holds is a matter of some conjecture. Based on sketchy information provided by the company, it appears that CMKM may have varying interests in claims covering between 1.4 million acres and 1.9 million acres in Saskatchewan.

Most of the company's prodigious promotional and modest exploration efforts centre on its heavily touted diamond prospects in the Fort a la Corne area where there are two advanced diamond projects, one owned by a group headed by De Beers Canada Corp. and Kensington Resources Ltd. and the other owned by Shore Gold Inc.

Notwithstanding the many years and many millions of dollars spent by the De Beers and Kensington group and Shore Gold, neither of those projects has yet been established as economically viable. Nonetheless, they provide some promotional mileage for CMKM, which purports to be "racing to find more diamonds" in Saskatchewan.

It remains to be seen whether the cash infusion from St. George will give some traction to the racy CMKM promotion, widely touted as the "stock play of a lifetime."

CMKM reports that it has already received $5-million in two equal payments from St. George, the most recent on Sept. 13, and expects two additional payments of $2.5-million over the next 30 days.

At this point, the source of that $10-million is a mystery, and it may well remain so. Like CMKM, the resuscitated St. George trades on the unregulated pink sheets, free from the burden of even rudimentary disclosure requirements.

Another CMKM backer, U.S. Canadian Minerals Inc., trades on the OTC Bulletin Board and is subject to reporting requirements with the U.S. Securities and Exchange Commission (SEC).

So far, U.S. Canadian Minerals has peeled off 7.5 million shares in exchange for five per cent of CMKM's mineral claims and has made two cash payments totalling $5.5-million under a one-year option agreement allowing it to purchase an additional 10-per-cent interest for $15-million.

Nearly penniless U.S. Canadian Minerals, flagged with a going-concern warning, executed an initial $3-million purchase under its option agreement with CMKM on July 28. An Aug. 23 SEC filing disclosed that the source of the $3-million was a subscription agreement for 600,000 shares of U.S. Canadian Minerals priced at $5 per share from an otherwise unidentified "related party to CMKM Diamonds."

After announcing on Sept. 8 that it had secured a further $3-million by way of a private placement, U.S. Canadian Minerals doled out another $2.5-million to CMKM on Sept. 9. The participant or participants in the Sept. 8 financing have not been even vaguely identified yet, inviting speculation among some skeptics that a party related to CMKM may have been involved in that private placement, too.

Meanwhile, questions have also surfaced regarding a relationship between Mr. Casavant's CMKM and the company's newest patron, St. George. According to a recent article by Dow Jones reporter Carol S. Remond, however, Mr. Casavant claims that he has nothing to do with St. George and knows nothing about it being a dormant shell.

The recently revived St. George is now headquartered in Vegreville, Alberta, a farming community with a large Ukrainian presence and several nearby Hutterite colonies. With a population of approximately 5,800, Vegreville is not known as a financial hub, but it does lay claim to being the home of the world's largest Easter egg.

Vegreville is reportedly also home to Mark Giebelhaus, president of St. George and the only identified officer of the company at this point. A directory search returns a surprising 21 Vegreville telephone listings for the surname Giebelhaus, but no public listing for Mark Giebelhaus.

St. George's investor relations spokesperson Vicki Curran also lives in Vegreville, as does her father, Victor Casavant, who happens to be Urban Casavant's brother. In a Stockwatch interview, Ms. Curran readily acknowledged that she was Urban Casavant's niece.

According to Ms. Curran, Victor Casavant is not involved with St. George. While he may not be directly involved with St. George, it does appear that he is at least "close" to the play.

A call to Victor Casavant's telephone number and a request to speak with Vicki brought the response that she was on another phone. Moreover, it appears that St. George at least briefly used a Vegreville postal box that has also been used by Victor Casasvant, including appearing below his signature on a 1995 settlement agreement with the Alberta Securities Commission.

Victor Casavant evidently ran afoul of Alberta securities regulators in connection with an illegal distribution of shares of a non-reporting issuer, Striker Minerals Ltd. The terms of the settlement agreement, a $1,000 (Canadian) fine and an acknowledgement of "the requirement to be more diligent when raising capital in the future," suggest that it was considered a relatively minor breach of securities regulations.

Ms. Curran told Stockwatch that she is new to St. George, but has about 13 years of experience in investor relations with other companies, both public and private. She would not disclose the names of the companies she was previously involved with, however, telling Stockwatch that the information would be provided in press releases issued over the next week.

While reluctant to discuss her specific background when contacted by Stockwatch, Ms. Curran offered some information regarding her former husband without any prompting at all. According to Ms. Curran, Kevin Curran served a brief stint as investor relations representative for Northern Star Resources Inc.

It is not clear why Ms. Curran volunteered that information regarding her ex-husband, but perhaps it had something to do with the fact that VSE-listed Northern Star was the successor to Petro Plus Inc., a company once headed by her uncle, Urban Casavant.

Mr. Casavant took charge of Petro Plus in November of 1995 when the stock price was languishing at about 15 cents. Under Mr. Casavant's guidance the share price climbed above $1 within a matter of months, amidst much nattering in news releases about "visible gold" in drill samples from one of the company's properties.

Petro Plus's stock price subsequently collapsed as quickly as it had risen and Mr. Casavant abruptly and rather intriguingly parted company with Petro Plus on Oct. 25, 1996. Petro Plus, which was halted at the time of Mr. Casavant's surprise departure, did not even bid him a fond farewell.

Three weeks after Mr. Casavant either jumped or was shoved out of Petro Plus, the company, which was still halted, served up a few more details about the affair including a share sale agreement between Mr. Casavant and the company's new president, Randy Studer. Under the agreement reportedly signed shortly after his departure, Mr. Casavant sold more than 1.9 million shares and more than one million warrants exercisable at 20 cents per share to Mr. Studer.

"Contemporaneously with the share sale agreement, an agreement was entered into between the company and Urban Casavant and certain extended family members to terminate any formal relationships or positions (excepting the rights under certain mineral claim option agreements)," the company went on to report in its Nov. 13, 1996, news release.

Petro Plus did not identify the "certain extended family members" whose formal relationships or positions with the company were terminated, so there is no way of knowing whether any of them are among the 22 Casavants disclosed as holding shares in CMKM. In any event, regulatory filings and various court documents related to litigation involving the Casavants suggest that family members are frequently associated with Mr. Casavant's enterprises.

Petro Plus closed out its news release with a rather curious statement.

"The transaction between Randy Studer and Urban Casavant was a positive agreement for all concerned and will now enable the company to focus on the business of mineral exploration," the company declared, perhaps raising the question of just what business the junior exploration company had been focusing on during Mr. Casavant's tenure.

As it turned out, the newly enabled focus did little for the company or the share price. With the stock changing hands at a Canadian penny in January of 1999, Petro Plus consolidated its shares on the basis of one new share for each five old shares and changed its name to Northern Star. Just over a year later, with the stock trading at five Canadian cents, Northern Star executed a similar rollback and changed its name to Odaat Inc.

Odaat, still under the direction of Mr. Studer, limped along until January of this year before executing yet another share consolidation, this time on the basis of one new share for each four old shares, and changed its name to Explor Resources Inc. Explor trades thinly and sporadically, sometimes going days between trades. It last changed hands on Sept. 9, registering a volume of 250 shares and closing at 34 Canadian cents.

While the Petro Plus affair is long behind Mr. Casavant, he at least briefly teamed up with his Petro Plus successor and current Explor president Mr. Studer again last year. On Aug. 27, 2003, CMKM awarded a reported $3-million mineral exploration and drilling contract to Mr. Studer's privately held Durama Enterprises.

Just how long that ballyhooed contract lasted and how much money changed hands, if any, are open questions. CMKM's last mention of Durama came in an Oct. 30, 2003, news release announcing that the company's Fort a la Corne diamond exploration had been delayed due "to unexpected magnetic storms caused by 'sunspots.'"

Meanwhile, some of the unanswered questions regarding CMKM's latest associate, St. George, should be answered over the next few days, according to Ms. Curran.

Among other things, Ms. Curran told Stockwatch that information regarding St. George's "brand new board of directors" would be released this week.

Ms. Curran would not disclose whether St. George had already raised the full $10-million needed to complete the announced deal with CMKM. Remarking that "it's definitely raising some flags to the investors," Ms. Curran said the "explanation will be in all the reports" to be issued this week.

According to Ms. Curran, "a handful of press releases" to be issued this week will provide the background of the company, where it is going, "levels of priority" and other information. A new Web site is also scheduled to be operational this week.

"I kind of feel like I'm helpless right now just because there is not a whole lot I can release unless it's public knowledge," Ms. Curran said.

At this point, there is very little information in the public domain regarding the revived shell.

According to company information provided on the pink sheets Web site, St. George had approximately 16.9 million shares outstanding as of Sept. 6. With a staggering 200 billion restricted shares comprising part of the deal with CMKM, that figure will see an astronomical revision. St. George is authorized to issue 950 billion shares, so the outstanding share total could be subject to more massive revisions.

While such lofty share figures are beyond the experience of most investors, they are old hat to shareholders of CMKM, which recently bumped its authorized share total to 800 billion. Based on information provided by the company regarding a dividend-in-specie distribution of 7.5 million shares of U.S. Canadian Minerals scheduled for Sept. 24, CMKM has more than 779 billion shares outstanding.

Notwithstanding the fact that the dividend ratio was first provided to regulators as required under U.S. securities regulations by CMKM's much touted lawyer, D. Roger Glenn, and subsequently revised by the company at about the time it raised its authorized shares to 800 billion, many of the hundreds of cult-like Internet followers of Mr. Casavant's promotion dismiss any suggestion that CMKM has issued more than 779 billion shares.

Indeed, some CMKM shareholders are prepared to argue, speculate and theorize at painfully convoluted length that there are really only a few billion shares outstanding. Others go even further, claiming that there are no real shares outstanding at all.

Given that fantasies trump facts among many of the starry-eyed CMKM shareholders, the dearth of information regarding the revived St. George may be much more of a boon than a bane for the company's imaginative devotees.

While there is little in the way of information regarding the current St. George, there is a considerable amount of historical information available regarding the former VSE-listed company. Some select and dated snippets regarding St. George caused quite a tizzy among CMKM's cultish followers.

Legend and History

Just how the former VSE-listed company came to be named is probably lost in the dustbin of history, but many people will undoubtedly associate the name with the legendary dragon slayer and patron saint of England, St. George.

The notion of dragon slaying may resonate well with many CMKM shareholders, particularly the band of loyal followers who congregate by the hundreds on PalTalk, an Internet chat site that provides participants with both text and audio communication.

Among the "dragons" that fantasy-loving CMKM shareholders would like to see vanquished are the market makers they believe are shorting this sub-penny pink sheet stock. The fantastic estimates of the size of the imagined short position, served up repeatedly by the PalTalk faithful, range from hundreds of billions of shares to a trillion or more.

The belief in a huge short position is evidently shared by CMKM's investor relations representative, Melvin O'Neill, affectionately known as Uncle Melvie. Mr. O'Neill is a frequent participant in the PalTalk palavers; indeed, he checks in almost daily.

"This company is being shorted to the bejeesus," Mr. O'Neill proclaimed on Aug. 12, much to the delight of the assembled throng. He went on to claim that Mr. Casavant and Mr. Glenn, the company's highly touted lawyer, are both convinced of the same thing.

According to the CMKM faithful, Mr. Glenn will be taking care of the shorting "problem," and many believe that Vegreville-based St. George will play a role in that trumpeted problem-solving exercise.

While the popularized exploits of St. George are widely known, including Disneyfied tales of his legendary dragon slaying in England, the actual historical figure never set foot in England. He was martyred in Palestine around 300 AD and pilgrims and crusaders carried the already embellished stories of his deeds back to England several centuries later.

Among the accounts of St. George that eventually found their way into manuscripts are tales that he was put to death three times, chopped up and buried, but resuscitated to carry on with his mission of converting heathens to the true faith. While the substance of those tales is generally discounted, some parallels might be drawn with the corporate history of the newly revived St. George.

St. George Minerals Inc., which was little more than a garden-variety VSE-listed junior mining company, began trading more than two decades ago. Among the early participants in St. George, however, were two people whose names have caused a tizzy among the excitable CMKM followers: Stewart Blusson; and Ross Blusson.

Stewart Blusson has near-legendary status among those familiar with Canadian diamond exploration. Along with the perhaps more widely known Chuck Fipke, Stewart Blusson discovered the diamond deposit in the Northwest Territories that became Canada's first diamond mine, the Ekati mine.

Alas, at least for the excitable CMKM fans, Stewart Blusson's association with St. George Minerals was fleeting and distant. He is recorded as receiving shares of St. George Minerals to satisfy a debt, something that occurred long before the company completed its makeover into St. George Metals in January of 1991.

Ross Blusson's association with St. George Minerals was more extensive and direct. He, too, received shares for debt, but he also participated in a private placement and served a stint as a company director.

Alas, again, at least for the CMKM fans excited by the very mention of the name, Ross Blusson was long gone before St. George Minerals executed its 1991 transformation into St. George Metals.

The liquidation of St. George Minerals and the amalgamation with its U.S. subsidiary was proposed by the company's five-member board of directors, which did not include anyone with the name Blusson, in January of 1990. The proposal received shareholder approval at the annual general meeting on May 31, 1990.

The liquidation and consolidation was consummated on Dec. 31, 1990, and St. George Minerals was delisted from the VSE on Jan. 29, 1991.

With St. George Minerals laid to rest, St. George Metals began trading on the VSE on Feb. 1, 1991. The resuscitated St. George Metals boasted seven directors, none of whom were named Blusson.

In less than a year after being called to trade on the VSE, St. George Metals racked up 12 delinquent filer notices before being cease traded by the British Columbia Securities Commission.

The company cleaned up its filings and the cease trade order was rescinded on Dec. 30, 1991, but less than six months later it was again being cited as a delinquent filer.

St. George soldiered on for a time, but the cash-strapped company ceased operations at its Dean Mine in Nevada in September of 1993. After tallying another eight delinquent filer notices, it was finally suspended from trading in 1995 and then ignominiously delisted from the VSE early in 1996.

Before its recent awakening, the shell traded sporadically on the pink sheets, eking out only occasional trades over the past year, most at one-10th of a penny. That changed rather dramatically following the Sept. 2 news release regarding the $10-million deal with CMKM.

On Sept. 8, St. George hit a dizzying high of 75 cents before settling back to 35 cents on a volume of more than 650,000 shares. More than 2.4 million shares changed hands the following day, but the price slid a bit further, ending the session at 26 cents. With just over one million shares trading on Sept. 10, St. George climbed back up to 37 cents.

The trading volume has dropped off this week as investors, including CMKM's faithful and excitable shareholders, await the promised announcements from St. George. None of the handful of information-packed news releases that were to be issued this week has yet appeared.

With a more modest 57,530 shares changing hands, St. George closed at 44 cents on Sept. 15.

Meanwhile, CMKM's share price has not enjoyed any lift at all from the deal with St. George, much to the consternation of the company's faithful followers. Indeed, the share price has been under some pressure, dipping as low as two-100ths of a penny over the past couple of days.

With more than 2.1 billion shares changing hands, and thanks to yet another of the rather frequent 50,000-share trades at the daily high logged at the bell, CMKM closed at four-100ths of a penny on Sept. 15.

The saga will continue.



Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
mdec
Member


Rate Member
Icon 1 posted      Profile for mdec     Send New Private Message       Edit/Delete Post   Reply With Quote 
This saga is hilarious.
Posts: 87 | From: Canada | Registered: Jan 2004  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
Hey Wallace, been busy and it took some time to read through all these documnts. But I could not find any mineral claims for CMKX in Saskatchewan.http://www.ir.gov.sk.ca/Default.aspx?DN=3572,3385,2936,Documents
Maybe I miised some of their associates there but here is the link.

Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
BCmouser
Member


Member Rated:
5
Icon 1 posted      Profile for BCmouser     Send New Private Message       Edit/Delete Post   Reply With Quote 
Well looks like the **** has finally hit the fan. Mr Glenn, their highly touted securities lawyer is going to earn his keep now. Appears there are a few questions from the SEC and Sask Commission alluding to the truthfulness of CMKX and UCAD (now USCA)-how they have stated asset values. Also Mr Casavant , Melvin Oneill and Desormeu have traded securities illegally.They are suspended until NOv 10.
Posts: 443 | From: Valemount | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
   

Quick Reply
Message:

HTML is not enabled.
UBB Code™ is enabled.

Instant Graemlins
   


Post New Topic  Post A Reply Close Topic   Feature Topic   Move Topic   Delete Topic next oldest topic   next newest topic
 - Printer-friendly view of this topic
Hop To:


Contact Us | Allstocks.com Message Board Home

© 1997 - 2018 Allstocks.com. All rights reserved.

Powered by Infopop Corporation
UBB.classic™ 6.7.2

Share