How can you call yourself a mining company when your entire business model revolves around deliberately suckering in greenhorns on social media, filling your pockets with their money and distributing it to insiders? Mining the market? Mining paper? Whatever, but Amir Adnani is the type of pure scum that gives the industry its bad name, supported by zero moral colleagues, a hierarchy and an entire sector that prefers to turn a blind eye and enable these white collar recidivists, rather than clean itself up.
This is a play in three acts. First up the ATM facility, set up by Goldmining in December last year that sells treasury shares directly to the market:
“…an equity distribution agreement (the “Distribution Agreement”) with a syndicate of agents led by BMO Nesbitt Burns Inc., and including BMO Capital Markets Corp., H.C. Wainwright & Co. LLC, Haywood Securities, Laurentian Bank Securities Inc. and Roth Capital Partners, LLC (collectively, the “Agents”), for an at-the-market equity program (the “ATM Program”).
The Distribution Agreement will allow the Company to distribute up to US$50 million (or the equivalent in Canadian dollars) of common shares of the Company (the “Offered Shares”) under the ATM Program. The Offered Shares will be issued by the Company to the public from time to time, through the Agents, at the Company’s discretion. The Offered Shares sold under the ATM Program, if any, will be sold at the prevailing market price at the time of sale.
The Company intends to use the net proceeds of any such sales under the ATM Program to fund the exploration and development of its mineral properties, to fund future acquisitions as may be determined by the Company, and for working capital.
And with Wainwright and Roth in The USA, wouldn’t you know? The second act is to wait for a day when the Canadian market isn’t paying attention, for example Canada’s Victoria Day holiday when GLDG trades in The USA but its GOLD.to ticker is closed for business. The third act is to seek out, find and pay a bunch of souless social media influencers, the vomitworthy whores who’ll do anything for money with their channels on YouTube, Twitter and suchlike, to pump the stock to a bunch of unsuspecting fools who have more money than sense. That’s where you come in, sucker.
Add in the latest chapter in corporate engineering, in which GOLD plans to split its mediocre asset book into North America via a spin-out (free shares!) and you have a recipe to exchange worthless paper for United States Dollars. And to cap it all, once GLDG insiders and management have siphoned off all they can via exorbitant G&A and other fee items, they’ll use the proceeds to prop the other highly overvalued company in its stable by buying shares in Gold Royalty (GROY). As we pointed out in this recent post, the shady financial tricks being played in the background of this company are almost too blatant, but as the target audience for this scam wouldn’t even know where to find the company financials, let alone read and understand them, they fly straight over the heads of these greenhorn fools.
Worthless shares in a worthless company with worthless assets, pumped by worthless people to idiots with sequins in their eyes, a mining company is specifically set up to rip off social media and prop up another creaking edifice of over-valued paper. Pure and unadultered malevolent greed, with Amir Adnani the scumbag at the centre of it all. Rick Rule must be proud of his protege, a real chip off the ol’ block.