Wednesday, April 20, 2011

Mining PRs and the Ottotrans™, Part 39

Today's Miner-NR-Into-Normal-English falls to Sinchao Metals (SMZ.v):

This is what they said:

TORONTO, ONTARIO--(Marketwire - April 20, 2011) - The Board of Directors of Sinchao Metals Corp. ("Sinchao" or the "Company") (TSX VENTURE:SMZ) reports that, further to the announcement made on February 7, 2011, regarding the ownership status of four of the property claims comprising the Sinchao Project, it has determined that title to the claims were not properly transferred to a subsidiary of Andean American Gold Corp. ("Andean"), the party that purported to transfer the claims to Sinchao. As a result neither Andean nor Sinchao holds any proprietary interest in the claims, which claims contain approximately 40% of the inferred resource previously disclosed by the Company. The Company has been striving to reach an agreement with the parties that Andean originally dealt with in order to remedy the deficiencies in title however it has been unable to reach such an agreement. The Company is therefore not optimistic that it will be able to remedy the deficiencies in title, and will make the necessary adjustments to its financial statements to reflect the write down of these four properties.

And this is what it means:

We're screwed.

 UPDATE: SMZ just opened after being halted all day:

The SMZ mothership, AAG.v, having a bit of a drop too.