Thursday, August 12, 2010

Constitution Mining (CMIN.ob) is running short of suckers

It's been a few weeks since we checked out the game of stone soup known as Constitution Mining (CMIN.ob), but the news today from the company is somewhat hopeful, so here's an update. Not hopeful for the company itself, mind you. What this humble scribe refers to is that by the looks of things, CMIN is running out of suckers to scam. Here's why:

  • On June 23rd, CMIN announced it was running an equity placement to raise U$8.125m. At that time, early in the raising process, it had pledges of $302,250 on the table.
  • So today CMIN updated on the raising process. So despite pumping the stock not once but twice in via its bullshit Swiss, German and Austrian compliant paid pumphouses (it got over $1 recently before the inevitable selloff and pullback) CMIN is now at a total of just $1,722,733 raised. In other words, in the last seven weeks it's only managed to add $1.4m to the placement book and still has six million left to find.

We know that CMIN is woefully short of cash. It's taken on short-term bridge loans that it needs to pay off quickly and it needs to raise the cash to close on its silly deal with the equally silly Seabridge Gold (SA). This not even mentioning the stupidity of its MaraƱon river "gold sands" malarkey. With working capital still heavily negative it's going to be fun to watch how long Michael Stocker can keep this shell game running. DYODD, dude.