Saturday, August 24, 2013

The Wacky World of The Canadian Junior Resource Market-crap

Every now and then, you get a story that makes you laugh a little....

Anyways, anyone who has read this blog before ( one) would have read a write up i did on Sphere Resources a while back. A penny stock company trading on the NEX with some could be interesting properties. Here's a quick read

Well....In case you haven't been following, which I'm sure you haven't, they announced in April that they will be pursuing a $10 million private placement through secured debt offering. They don't have a lot to offer, but thats what they are doing non-the less.

With about a fifth of that amount in accounts payable, 4 months until they loose their ability to earn in interest on their pokerflats/ziggurat properties, and the horrible market conditions right now...its hard to imagine that this will close.

That being said....Imagine my surprise yesterday when I checked on it before closing and saw a huge amount of volume compared to normal....just over 10 mill shares traded before closing. I thought that maybe somebody got wind that the financing had closed, but nope....

turns out the guy from Investors stock guide dot com was on BNN and mentioned them and how they have their fingers on all the right properties.

Disclaimer: I have about 20,000 shares in sphere I picked up from trading it when they first announced the financing, and then the 3 subsequent updates that always created more volume.Flipping pennies....flipping pennies...

UPDATE: Out of curiosity, I emailed management the other day asking how they plan on paying basic fees with less than 10k in the bank. I was told that management has been paying for fees out of pocket, and that it is seen on the balance statement with accounts payable to related parties. Cuts the liabilities by quite a bit. Exchanged a couple of emails with the CEO in regards to the Poker Flats property. Nice guy.

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