Looks like Constitution Mining (CMIN.ob) has ended up with meagre pickings in the way of working capital. According to the latest filings, of the U$5.2m in new shares they tried to palm off onto the innocent amongst you, only U$1,051,050 worth has been sold (to 41 people).
Ok, a million is a million, not bad and all that. But the problem is that CMIN.ob still has to pay large chunks of money to secure the asset (if that’s the right word). U$3m was due to the optioners by the end of September so the fact that CMIN.ob had less than $150k at bank is why this smoke’n’mirrors operation was so keen on raising $5.2m right now.
So let’s do the math: one hundred and fifty thousand + one million = less than three million. Yep, I’ve checked it twice and it looks like there’s a problem, Houston. No 25% of sand for you.
Moral of this story: Do not invest in start-up mining companies that have market caps ten times larger than their assets. Ever.