Still no mention on either sharemarket about the annual reports being available to read on Sedar.
NZResources today: Henderson joins Aorere board
Geologist Simon Henderson has become a director of Aorere Resources Ltd (NZX: OAR).
Until recently he was managing director of Glass Earth Gold Ltd which changed its name to Antipodes Gold Ltd and remains listed on the Toronto Stock Exchange’s Venture board and also the New Zealand junior board (NZAX).
Henderson remains on the Antipodes board as exploration director.
Aorere’s chairman Dene Biddlecomb said Simon Henderson brings a level of expertise to the company – perhaps an indication it will be looking at gold prospects in NZ and abroad, given a statement last week that the company was looking for new opportunities.
Actually this makes perfect sense: Chris Castle runs Aorere, and his office was in the same Straterra grouping on the first floor of 93 The Terrace, Wellington. He'll know Simon Henderson quite well. Aorere seems to have the same huge share numbers, with not much value per share. MCAP about 3.5mill at present. All of the permits dropped by Glass Earth will be in the mix here, some will be duds, but maybe there's some value to be had in others. However, it's like in any business, projects all require capital and time. How many of these can Aorere afford?
Glass Earth /Antipodes have surrendered Neavesville North which was below Broken Hills mine, permit EP54492. Manorburn, which was transferred to Ophir Gold Ltd, has also been dropped. Antipodes still has WKP, and 40767, which is a permit underneath a large chunk of Waihi Township, beside Martha Mine. There are some other live permits too.
I think it's time for a synopsis on the current state of AXG, Antipodes Gold Limited, from my point of view. I have sold all of my shares a few months ago and taken the substantial losses.
Antipodes, being the renamed Glass Earth Gold company, is not a going concern, according to the auditors in the post above. It has lost nearly C$39mill of investors' money since it was set up in about 2006. It has a working capital deficit as at 31 December 2013 of about C$1,648,000. So even if the new capital raising of $2mill worked, they'd have very little of it left to actually do any exploration. Unless they intend to not pay the old bills. In NZ, that would mean you'd have trouble getting anyone to contract to the firm.
On the TSX and the NZX, no mention has been made by AXG that the annual report and MD&A is available, but it is resting in SEDAR, so they are legally OK there. But morally, it is very poor that they have not made access to these files more transparent on their website.
Here is a set of annual books that the auditors are not going to verify or honour with an audit. In particular, the value of the WKP permit. AXG think it's about $2mill worth, but it would appear that none of AXG's other permits have been worth anything much, except to defray some old bills with creditors who are otherwise stuck. They don't appear to sell well on the open market.
There is a company meeting in Vancouver this month, not sure who is paying airfares for the NZ connections. When I pointed out that there were no bids on the AXG market on the TSX, overnight a flurry of buy/sell bids appeared. Is this just window dressing? Maybe the shell losses in AXG are being prepared for another company's backdoor listing. Either way, this company doesn't look like the Glass Earth dream I was investing in.
I'm glade to hear you too have realized this dream had turned into a nightmare and got the (I'll say this way for Moosie's benefit) H E double hockey sticks out while you still could.
The board & management must have had rocks in their head (not gold ones either) when things were getting critical for the company as a whole and they spent who knows how much on changing their name. Where's the benefit to anyone with interests in the company in a move such as that?
Since the time I've got out of GEL, I've had a few plays in the market. I made a few coin on a couple of choices and lost a few on a couple of others. When reflecting on my decisions, I decided that the market is not the place for me. I've sold off all of my holdings barring NTL. I still have belief in their crew and with a touch of luck, I'll be able to recover overall losses made elsewhere.
Yes, I might be in the same boat, I'll make those losses back sometime. I also recognise that outside my main work area, I'm a poor judge of other investments. It's fair to say that the managers of GEL/AXG have not lied per se over the positions they've taken with our funds, but it's the details they left out that scuppered our chances of making a dollar. Maybe also, a bit of bad luck that gold didn't just pop up in the right sort of concentration in any of the widespread permits.
Nice to know that the Greens and scientists can put together an article that is also short of many facts. Catherine Delahunty suggested that ACC should pull their money out of AXG. Good luck with that, maybe if they're successful in getting back $2mill we could all win. Their investment is now worth a paltry $50k. If that. The whole article didn't mention that Archey's Frog has never been found closer than 20km from WKP. (Not correct, see later post).
Drilling on WKP, expected within 2 years? So the game for AXG must be to sit back on very low overheads and hope everyone forgets what a poor investment it has been.
I'll head out there and start digging the holes myself if ACC gives me a 30% stake. Seriously considering if I should get onto a Board of a company and start banging heads together with common sense (which ain't so common these days!)
How about this Moosie, if we came up with a good-looking proposition or project, a well written prospectus and the blather to go with it, could we see how long we can make $40mill last? I'm always amazed to see that there are always investment funds looking for a home, and while I wasn't able to contribute much in that line, I did more than enough due diligence, and still didn't find out what was really going on until the end.
Fake it, until you make it. That must have been their motto.
Sounds good to me. During the Dotcom boom all you needed was an idea scribbled on a napkin pitched to the nearest venture capitalist. Fancy becoming a moose farmer?
Maybe we could make GRUs, ready for the next gold rush. At least we'd be at the right end of the business.
Just to keep you thinking while you are unpacking, AXG has let St Bathans go (they don't have many left at all), but has transferred the huge Kakanui prospecting permit (PP53297) to Skevington Contracting, who are running Drybread. It's about due to expire anyway, but maybe they're going to do something with it. It's the last major part of the big Otago permit area that GEL had. Those were the days huh? The expectations of grandeur.
On 14th July, AXG transferred the ownership of the Manuherikia (EP53182) and Drybread (MP53653) permits to Skevington Contracting Ltd. This means that AXG has no prospecting permits, no mining permits, and one standard EP in the South Island, the interesting Sparrowhawk permit. But they still have a few extended EPs around Waihi, mostly owned with Waihi Gold (Newmont).
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Originally Posted by Yankiwi
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