What's the funniest part of the Constitution Mining (CMIN.ob) 2009 year end report, Otto?

Ooooh, gotta be this bit i think:

Our accountants have raised substantial doubt with respect to our ability to continue as a going concern.

As noted in our financial statements, we have incurred a net loss of $16,662,828 for the period from inception on March 6, 2000 to December 31, 2009 and have no present source of revenue. At December 31, 2009, we had a working capital deficiency of $14,807,730. As of December 31, 2009, we had cash and cash equivalents in the amount of US $205,125. We will have to raise additional funds to meet our currently budgeted operating requirements for the next twelve months.

The audit report of James Stafford, Inc., Chartered Accountants, for the fiscal year ended December 31, 2009 and 2008 contained a paragraph that emphasizes the substantial doubt as to our continuance as a going concern. This is a significant risk that we may not be able to generate and/or raise enough resources to remain operational for an indefinite period of time.

Read the whole thing here. Great fun!

Catching up with the Constitution Mining (CMIN.ob) scam

We haven't had a good laugh about Constitution Mining (CMIN.ob) for a few weeks, but the news received this morning makes it worth our while. Back on October 5th, IKN ran this post that featured the CMIN news release du jour in this way:

LIMA, PERU--(Marketwire - Oct. 5, 2009) - Constitution Mining Corp. (OTCBB:CMIN - News) has appointed Mr. Gary Artmont of Quito Ecuador, to serve as the new President and Chief Executive Officer of the Company replacing Willem Fuchter. In addition, Steve McMullan has joined the Board of Directors and Dr. Richard Garnett has been named Senior Technical Field Coordinator.

Well, oddly enough it seems that one of those named is pretty keen on getting his name cleaned of all connection with CMIN. This morning the following comment was left under that post by the abovementioned Dr. Richard Garnett. Here's the whole comment:

"Those interested should note that I visited Constitution's exploration site in Peru on 10 through 13 October, 2009. I reported my technical findings in writing to the then CEO of the company on 25 October, after which date I terminated all direct involvement with the project. Richard Garnett"

We are of course assuming that the person who wrote that is indeed Richard Garnett and not someone trying to play some trickydicky headfake on us. But assuming truth as written (which is 99.9% certain, cos as well as the ring of truth about the comment the IP address of the commenter matches Garnett's hometown....yeah I checked) there's little doubt that the above is a really damning thing to write about a former employer. Remember, IKN is the annoying little blog that toldya so about this scam.

Affinity (79F.f) and Constitution (CMIN.ob): Catching up on the Peruvian alluvial gold scams

First up is the Peruvian alluvial gold stupidity known as Affinity Gold (AFYG.ob) (79F.f) and ever since this post that noted the stock was trading at 24X asset value, things just haven't been the same for the scamsters.

So far it's 57.7% down and there's still an awful lot of dropping left to do, folks. Cue owl:

Now let's drop in on Constitution Mining (CMIN.ob), the other joke gold miner currently trying to pretend it's worth multiples more than its asset value by pumping an alluvial gold project that has all the same hallmarks as Affinity. The chart has also been looking weak....

.....but the real fun here are the latest regulatory filings. Here we see how the main insider is milking the company for all its worth by contracting out the social relations side of the scam to his own company for the cool sum of U$10,000 per month (and a whole bunch of expenses on top of that fee). Here below is part of the filing and the company referred to is 'The Stocker Group', run by a certain Michael Stocker. Amazingly, this deal was struck just before the latest 'management realignment' that made the new President and CEO for CMIN.ob.....yeah you guessed it already....Michael Stocker! :

The “Company” shall receive a fee based on work load for its services rendered during 1 (one) year (Oct. 2009 to Oct. 2010). The following fees will apply and be invoiced monthly.

(a) Hourly time charge: For meetings, telephone conferences/calls, etc. of less than half a day fee is USD 200/hour.

(b) Daily time charge international consultants: For periods equal in duration to, or exceeding, half a day fee is USD 1300/day. Between 0.5 and 1.0 day the charge is pro-rata. Local consultants in Peru will be charged at a day/fee of USD 600/day. The compensation rate has a cap of $1300 payable in any business day.

(c) Travel time is charged at the same daily rate.

(d) Consulting services provided by Dr. MICHAEL JOHANN STOCKER pursuant to this agreement will be limited to USD 10,000/month.

(e) Reasonable, proven expenses (travel, accommodation, meals, major ‘phone charges, etc.) are charged at cost with no mark up. Receipts are provided for all charges.

(f) Flights, and combinations of flights, of 3 hours or more in duration are in business class.

(g) The company may terminate the contract with 3 month’s written notice.

This milking isn't something new, though. As the filings show, in 2009 Stocker managed to cream off $90,000 directly for himself and another a cool $257,130 went to his other company, 'Stocker International Inc', all for the line items known as 'consulting services' (my, those overheads, eh?). All this from a company with a 7X ratio of market cap to NAV and on a current 18 month exploration program that according to the same filings needs even more money thrown at it else be curtailed.

Yes indeed, PT Barnum is alive and well and living in Santiago, Chile.