Capella (KPS.v): Well what a surprise

We even had a news release to loosen up the volume from these shameless scumbags at KPS.v.


This is the most blatant and criminal scam of 2009. CEO Bachman belongs in jail.

Capella Resources (KPS.v): Last one to leave turn out the lights, please

Here follows one small segment from this week's IKN Weekly about Capella Resources, currently finalists in the 2009 "mining scam of the year" competition due to this information. The time to know what's below was really Sunday afternoon (when the 9,600 word IKN12 dropped into subscribers' inboxes) and not after the bell Monday, but consider it a headsup anyway (on KPS.v and on what The IKN Weekly can do for you).

Capella Resoures (KPS.v): Sauve qu’il peut
On Friday, Capella Resouces issued a PR (6) that said (main extract):

CAPELLA RESOURCES LTD. announces that the Company has received a total of $559,089.15 for exercise of warrants issued under the private placement of 12,933,330 units that closed on March 20, 2009 (the "Offering"). All Shares issued on the exercise of warrants issued under the Offering have a hold period expiring July 21, 2009.

As a small reminder, KPS.v is the company I featured on the blog as the worst scam I’d seen for a long, long time (7)(8) and at that point was in the process of carving up a new prospect for themselves and had excluded previous shareholders from sharing the booty by nefarious means. So what the above PR means is that the insiders that carved up the sweetheart placement in March (each of those units was a share at 6c and a full warrant at 15c and only friends and family were invited) have made about 30% of their 15c warrants whole and will be able to sell them on the open market as from Tuesday 21st July along with the other near 13m shares that come out of escrow (these share escrow period endings are important to keep in mind, as noted last week). As the stock is now at C$0.55 and the company has already said that, through lack of funds, it will not be drilling at its prospective Lajitas property in 2009, expect a large rush for a small exit as from Tuesday as the self-serving scumbag insiders try to get 18 million or so shares turned into cash.

I wouldn’t be at all surprised if the company issues a piece of seemingly good news this week that allows its insiders to sell into volume. Time will tell, but avoid like the plague whatever happens. Again, another ‘caveat emptor’ instance about the crooked ways of the Canadian market and yet again you hear my insistence on the importance of quality managerial teams.

Capella Resources (KPS.v): The fun never stops with these scam artists

Capella (KPS.v) today announced that it had started drilling at its Nevada property in Chile today, but we don't care much about that. It doesn't matter if they find the lost city of El Dorado with that diamond drillhead, quite frankly, as the company behind the drilling is the thing that matters here and as we've already noted they're the kind of people that would sell their mothers to work as Osama Bin Liden's bottom wiper if the price were right.

No, far more fun is the news from (what Otto considers to be) totally reliable sources that Capella has had the brass neck to apply for one of those fancy International Finance Corporation (IFC) loans. As a quick aside for those who don't know, the IFC is the financing arm of the World Bank and often buys into resource companies, giving them preferential rates on working capital. A recent example is the money loaned to Greystar (GSL.to) for its Angostura gold project in Colombia.

Anyway, the frauds at Capella want some of the IFC slush, probably because their recent placement at $0.73 has fallen flat on its face and they're getting desperate. Still, Otto predicts that hell will freeze over before the IFC lends this band of crooks cash, but if by some miracle they do manage to land some moolah it will speak volumes about just how inept the World Bank is with its money and just how little DD it does before writing out cheques.

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Capella Resources (KPS.v) and a Trip Down the Investor Relations Rabbit Hole

Our scamsters over at Capella Resources (KPS.v) came out with news last night. They've hired a firm of investor relations to help promote their rip-off by the name of Senergy Communications. Based in Vancouver (just across from the Hotel Vancouver in fact), Senergy provides (ahem..clear my throat):

"strategic investor relations, public relations, and (sic comma) marketing solutions that are customized to the needs of your organization".

Senergy also boast of having a 30,000 name database of North American investors.

In other words, they're a bucketshop pumphouse that are about to phone 30,000 houses in the next couple of weeks to see if they can dig out a patsy or two. However, by their fruits shall ye know them (Matthew 7:16 dude on a hill talking to a crowd 2,000 years ago) so let's see how Senergy clients have been getting on recently.

Let's kick off with Troymet Exploration (TYE.v) who hired Senergy in August last year to tell the world just how wonderful they really are. Let's check the chart, and.........
....hmmmm. I've seen better, has to be said.

Never mind, how about Senergy's previous client, Petro Vista Energy (PTV.v). When Senergy got the job of relaying to the world the stuff that PTV.v was made of the stock stood at $0.75.

Now it's at 20 cents. Time for a quick joke! Q: How do you make a small fortune in penny stocks? A: Start with a large fortune and believe what they tell you.

Then there's "True North Energy" (T8E.f), another client of Senergy's...
.......but you should be getting the picture by now.

However my fave story is that of Fox Petroleum (FXPT.ob) that hired Senergy to promote the company back in June 2007 (not July like wot I writted on the chart). Before getting fired by FXPT in September 2008, Senergy had overseen the stock price as it moved from $5.15 to $1.85.

Fox is now a $0.35 company. Death spiralz iz wot death spiralz duz and Fox were not happy bunnies with the service provided by Senergy. The telling phrase come in FXPT's filing on the matter that states;

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

On September 1, 2008, we terminated an investor relations agreement with Senergy Communications Inc. whereby Senergy Communications Inc. provided investor relations services to us for US$10,000 per month

We terminated the agreement with Senergy Communications Inc. to improve the investor relations facility for new and old investors.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

You just can't the staff these days, can you? And those four were the only companies still in existence that have been mad enough to hire Senergy for IR work, according to my Google skills anyway (feel free to correct me if you know of any other suckers). So this is the cruddy IR firm just hired by the even cruddier Capella Resources to pump its BS to a bunch of greenhorns in the days to come. Just don't say I didn't try to warn you.

Capella Resources (KPS.v)

Well, it looks like the stock price has reacted nicely to this post last week...LOL!

As for that $5m placement the company was trying to scam at $0.73 a pop, as they say round these parts "sigue participando" :-)

But seriously, it's fine that the scam has been discovered and the PPS plummet, but really these people deserve to be in jail. The rats behind this scheme have done this kind of thing umpteen times and will just do it again if allowed to, but the supine OSC just sits backs and does nothing. And really, after all is said and done, the OSC is just a reflection of the nation in which it operates as Canadians don't kick up the fuss they should. For every Vancouver Sun David Baines (who gets them wrong ocasionally too...he was wrong on his recent take of Agapov imho) there are a hundred Brian Graceys, but you guys up there never weed them out. Those who don't learn from history are condemned to repeat it.

All Capella Resources scam posts linked here

Cerro Casale capex and those dubious neighbour plays

Any professional analysts at the Can'o'corn feeling stupid about pumping the Exeter Caspiche story yet? Cerro Casale is just down the road from Yale's dog of a project, remember. Same rocks, same grades, same lack of water, same altitude...same same same. (Hint to Mr Z; Next time you go on a site visit make sure you leave the comfort of the deluxe hotels and spend more than four hours at the mine site.

Oh, then there's that dubious Volcan under Andina Minerals (ADM.v). Same place. Then those utter criminals at Capella (KPS.v). Same place. As mentioned many times before not all gold ounces are the same, so check out below what Kinross and Barrick have suddenly discovered! My, doesn't it remind you of that Noront Ring of Fire thing from a couple of years ago.......

Via the Financial Post:

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A key development project for mining giants Barrick Gold Corp. and Kinross Gold Corp. has run into massive capital cost escalation, raising more doubts from experts that it will get built any time soon.

The project in question is Cerro Casale, a huge, low-grade gold-copper deposit in northern Chile. Kinross filed a technical report this week that pegged the construction cost of the project at a whopping US$3.6-billion.

That is an increase of 86% over the last estimate of about US$2-billion, made in August, 2006.

"This number is obviously going to have pretty big implications," said Dundee Securities analyst Paul Burchell, who used to work at Cerro Casale.

"It suggests to me that a project difficult to justify five years ago is probably more [difficult] today."

Experts are also concerned with the aggressive pricing assumptions made in the Cerro Casale study. Kinross is using a gold price of US$725 an ounce and a copper price of US$2 a pound, which is actually higher than the current copper price.

"It's a tough project economically because of the capex and the prices required to make it work. In this market, it will probably be deferred," said David Whetham, a resource fund manager at Scotia Cassels.

CONTINUES HERE

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Capella Resources update

I have to say that I'm pleased about the contents of the following five day chart and really don't care if it's a coincidence or connected that the big traded volumes in Capella Resources (KPS.v) suddenly stopped as soon as this post appeared on IKN Monday morning (and followed by this post later).

That's a 22% drop since publication ($1.10 to $0.86) but more importantly the thieves in suits selling at these higher prices to their unsuspecting marks have been stopped from unloading for big profits as the volume has dried to a trickle. Meanwhile, not a word from the OSC, "the houses" or the Canadian financial dailies about this most obvious of criminal frauds. Until you guys up there do something meaningful your sordid markets will suffer from the reflected reputation of scum like KPS.v.

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More on Capella Resources (KPS.v) and the scum behind the scam

This is an update to this morning's post which can be found below or on this link.

My oh my, what a company! Check out this link at one of my fave mineblogs, I Think Mining. Capella has a real reputation in the trade, as does the puppeteer behind the show, Brian Gracey.

Also unmissable is David Baines report on the ultra-shady Gracey, linked right here. Here's how the Baines report starts:

Brian Gracey's business doesn't look like a cash cow, but it is.

His office is located on the fourth floor of the tired Credit Foncier building at 850 West Hastings. The sign at the entrance says "apella Resources," a wounded vestige of Capella Resources, one of many TSX Venture Exchange-listed companies that he has controlled or managed during his two decades on Howe Street.

His office is, well, shabby. Some old steel filing cabinets, a couple of desks, no receptionist, just somebody who answers the door if you knock loudly enough. But appearances can be deceiving. Gracey has made a good living on Howe Street, good enough to afford to live in a $2.2-million home in the British Properties.

CONTINUES HERE

Also worth a quick look is this post from a blog back in 2006 that shows Capella Resources has been pumped and dumped previously....not a surprise, though.

The more you look, the more incredible it seems that the Canadian OSC regulators have never lifted a finger to protect innocent retail shareholders from these criminals. Now you know why I keep on calling the Canadian market one of the most corrupt in the world.

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Capella Resoures (KPS.v): A fraudulent scam for the ages

Capella Resources (KPS.v): A fraudulent scam for the ages

My jaded cynicism of Canadian junior miners, their scams and dubious managerial decisions designed to screw retail shareholders is well documented on this humble corner of cyberspace. However, every now and again a story comes along that leaves my jaw 100% dropped in amazement. Thus begins this post on Capella Resources (KPS.v) a company that has screwed its shareholders so far into the ground they're currently visiting the Mohorovicic discontinuity.

This story is so impressive it's difficult to know exactly where to start, so let's start here with the 12 month price chart

Yep, that's one helluva price jump recently, isn't it? The reason behind that jump is in this press release. The company hit a very nice drill return at its 'Lajitas' project in Chile (just a couple of clicks from XRC.v's Caspiche project, matter of fact). Here's the moneyline from the PR:

CAPELLA RESOURCES LTD. (TSX-V: KPS - News) (“Capella” or the “Company”) is pleased to announce drill results (drill hole LJ-08011) from the Company’s 100% own Lajitas gold project in northern Chile. The core drilling intersected a zone of continuous gold mineralization of 261 meters grading 0.91 grams per tonne (g/t) gold between 90 meters and 351 meters down the hole. Contained within the intersection is 104.7 meters grading 1.59 g/t gold

The PR comes with other bits of good news, but to cut a long story short KPS.v hit paydirt on this drillcore and the price shot up. Nothing wrong with that, of course. This is the whole reason behind the high risk high reward world of junior mining investment. Except that just before this sexy press release hit the wires, KPS.v took all the reward away from its shareholders and gave it to its own management team, gift-wrapped with a bow. You need to follow the time line here to get the full picture, so here are a few bullet points:

• On June 19th, KPS.v announced it had stopped drilling due to bad weather at Lajitas. Anyone who knows the region in question at that time of year will understand why. The drilling was stopped when the final hole reached 91m depth. It beats me why they were even attempting to drill there at that time of year, to be honest. 'Hostile environment' is putting it mildly.
  

• On October 30th drilling started on the 2008/2009 campaign. Note that the first drillcore that was taken from the 4,000m program is the one that had its results announced on April 2nd 2009 and made the stock fly. Don't you find it strange that it took KPS.v five months to drill 261m, log it, split it, send it down the hill to the SGS labs in Chile (SGS is a labtest company with an impeccable reputation, it must be said) and then finally get the news out in April 2009? Well it's even stranger when you find out what went on at the company between October 2008 and April 2009.
  

• On October 31st, the fun began. KPS.v decided to do a 10-to-1 reverse share split. Here's the moneyline from the PR:

The Company currently has 66,832,174 issued and outstanding common shares. If the Consolidation is conducted on a ten (10) for one (1) basis, the Company would have approximately 6,683,217 shares outstanding following the Consolidation.

Or in other words, if you were (just as one example) one of the shareholders who had participated in the $10m placement back in 2007 organized by Dundee, every 10 shares you owned at the time (that you bought at $1.10) were to be converted into just one share.

• On December 5th 2008, the deal went through.

• On December 24th, Capella began trading again at just three cents. Amazingly, it's the very same day that the CFO locked in that price by awarding herself stock options priced at 3c. Merry Christmas to you, Barbara Wolanski.

• On March 4th, the big switcherooney. Firstly, KPS.v quickly and quietly raised $1m in capital by offering a share at 6c and a warrant at 15c. This means that suddenly the share count that was slammed down from 68m to 6.8m was now back up to a fully diluted 40m or so (and those 15c warrants are now waaaaay in the money). Then KPS.v management decided to swap debt owed by the company to insiders for shares at 6c. (For future reference, the escrow period ends June '09). The deal, for example, handed two million shares over to the CEO, Richard Bachman. Plenty others got their slice, including the "43-101 independent qualified person".

• On March 24th, the transaction closed. Adding the debt-for-shares to the share count, we're now at 46m or so shares out. It's extremely suspicious that the company didn't want to have 68m shares outstanding to any old shareholder back in 2008, but suddenly it was cool about having 46m shares out when those shares had been sweethearted to friends and insiders.

• So we return to April's drill result announcement when that very same "qualified person" signed off on the five month delayed drill results that shot the share price from pennies to over a buck! More coincidence is that the paydirt drill return started at 91m below ground, exactly the same place where drilling was stopped in June 2008. Well, better said "supposedly" stopped, because if you believe in this many coincidences that bridge of mine is still for sale.

• And then two days later on April 3rd (last week) the company announces it's raising $5m with a $0.73 placement! Not only that, but KPS.v announces that it's going to give away nearly 2m stock options as "incentives" for management.

Ladies and gentlemen, these people belong in prison. This is fraud, quite plainly and simply. People like CEO Bachman should be arrested, locked away until tried, then stripped of assets, liberty and social standing by an honest day in court. On December 24th 2008, the company had a market cap of $204,000. At Friday's close, that market cap had shot up to around $38m, an increase of nearly 200X in a touch over three months and it's all suddenly in the majority hands of management and friends of management. So where is the OSC on this one? Who will stand up for the people screwed by KPS.v in 2008? Where is Dundee and why haven't they said a thing about this? Who were the "lucky ones" that so quickly bought in to the $1m share offering in March that added a cool 33m to the S/O total?. Canadian mining reporters at FP/NP, Globe&Mail etc, why aren't you on this case yet?

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