LIMA, PERU–(Marketwire – Sept. 27, 2010) – Constitution Mining Corp. (OTCBB:CMIN) reports that the Company and Seabridge Gold have mutually agreed to terminate the Asset Purchase Agreement to purchase 30 gold properties consisting of approximately 2,141 claims located in Nevada. The Agreement to acquire these claims was entered into between the parties on April 1, 2010 and subsequently amended to include an extension of the termination date of the Asset Purchase Agreement to September 30th, 2010. The closing of the Agreement has been mutually terminated by the parties.
Constitution Mining Chairman, Mr. Pat Gorman stated, “The termination of the agreement has been discussed and is agreeable with Seabridge. We came to the common conclusion that the deal would not be beneficial for both companies. At this time, Constitution will concentrate its attention and resources on its Peruvian Gold Sands properties. Additionally, Seabridge Gold has indicated it is willing to re-enter an agreement to sell the properties to us at a later date”
And this is what it means:
We have no money. We tried to raise $8m in an equity financing but have come up over $6m short so the $2m raised still leaves us with a negative working cap. As the payment of our own salaries is the highest priority at the company we can’t pretend we’re growing and buying pisspoor assets that will never become mines anyway just to say we have gold resources on our books. We’re going to stick with pulling the wool over shareholders’ eyes about a dredging project in Peru that’s never going to happen…but at least we can drag it out.