I've written on Sphere resources a number of times now; in fact it is getting quite embarrassing that I would spend so much time talking about it. But...I like to point things out.
Remember when I called Mexivada a "real estate company"? Meaning that they basically option out moose pastures for the 10-40k cash that comes along with the option agreements, and any free shares they (Redfern) might be able to sell on the market. Well, they have done it again.
The Poker Flats is a property they have been screaming about for years now. It is adjacent to Gold Standard Ventures Railroad property where in the past they have hit some very nice grades. The border of the poker flats is actually about 75 meters from where where a series of promising holes were drilled by GSV, leading Mexivada/Sphere to believe that they could, or at least talk like they could, have drill few decent holes themselves.
Now...one would think that if they were actually serious about it, if they really thought they had a discovery, they would raise the cash to drill 3200 meters, but no, in over 4 years they have done only a aerial magnetic scan and nothing else.
Well, the option agreement ran out, I actually just wrote about it a week or so ago; the post where I pointed out that Sphere publicly stated they had earned in on their initial 51% interest, and then retracting the statement by saying they had renegotiated the option agreement.
So, lets begin with the stupidity:
Mexivadas Sept 8th news release regarding the newly negotiated terms of the option agreement.
"Optionee can earn a 51% interest in Poker
Flats (the "Property") by compensating Mexivada and underlying lessor
in 1) a payment of$10,000 in cash on signing to Lessor(paid), 2) Payment of $10,000
to Mexivada on or before October 31, 2014, and 3) issue to Mexivada Mining
Corp. 750,000 common shares of Sphere Resources Inc. to Mexivada within 60 days
of its earning a 51 percent interest in the property and 750,000 common shares
of Sphere Resources Inc. within 60 days of the Optionee acquiring a 75%
interest in the Property"
So, they have renegotiated the terms on a property that, while holding such "promise", has seen no work done to it at all in 4 years? You would think that they would prefer to actually explore the property themselves, given Spheres current track record of actually doing exploration work.
But no, the $20,000 cash and the 1.5 million of 0.005 cent shares is preferred.
Interesting, because here is Mexivadas Dec 22nd 2010 release which states the original terms of the option agreement 4 years ago.
"Optionee can earn an 51% interest in Poker Flats (the "Property") by
compensating Mexivada in 1) a payment of $25,000 in cash on signing
(paid), and 2) issue to Mexivada a) 200,000 common shares of Sphere
within 60 days of the Effective Date of December 20, 2010, and b)
investing a sum of $500,000 into the property in exploration and
development expenditures (inclusive of assessment work) over a 36 month
period from the Effective Date. Optionee must issue 300,000 common
shares of Sphere Resources Inc. to Mexivada within 60 days of its
earning a 51 percent interest in the property."
So, I reiterate, no interest at all at in conducting exploration on this property. Redfern from Mexivada is happy with the cash payments (which have totaled $40,000 so far) from the option agreement and the cheap paper he can sell. Sphere is happy to be able to continually tout the Poker Flats property to retails investors, hoping to raise some cash for "management fees" and sell their free paper as well.
To further make my point, lets take a look at some of Spheres press releases. One will notice that these PR are purely IR hype rather than the release of any material information. Lets begin with 2013...
-September 04 2013: Sphere resources confirms strategy and updates efforts to identify existing gold and silver resources in Nevada. If you find yourself asking what this actually means, you are not alone. I would recommend reading the press release as it is quite hilarious. GSV had put out some decent results that day so Sphere used it as an opportunity to use a publicly dessiminated news release as an IR move. Seriously..read it, it sounds like a bad junior PR move, which it is. You will find that no material information is announced.
-September 23 2013 : Sphere Resources Has Engaged a Senior Geophysicals Consultant to Initiat a CSMAT On Its Poker Flats Property. Of course, engaging doesn't really mean a whole lot, nice choice of words. And did this scan ever happen? No.
-September 19 2013 : Sphere Resources on its Poker Flats Property Adjacent to Gold Standard Ventures Railroad Property. Another news release put out the same day as GSV releases exploration results on their Railroad property. Again, no material info is being disseminated.
- October 2 2013 : Sphere Resources on Its Poker Flats Property Adjacent to Gold Standard Ventures Railroad Property. Yes...same release following another GSV drill results release. Not that I need to say it, but no material info.
-October 23 2013 : Sphere Resources Outlines Specifics On Its Phase 1 Drill Program On Poker Flats Nevada. Here they outline nearly $500,000 in projected exploration costs, of course, they still have no money with which to conduct said "outlined specifics", although it does mention something about their "new york advisers" and their $10,000,000 bond financing (Another funny news release which can be read Here )
- September 18 2014 - Sphere Resources Outlines Financing Approach and Phase 1 Drill Program at Poker Flats: Still outlining financing and drill programs a year later. Not a single whole drilled...
There are more releases to this effect, and some starting before 2013, but for the sake of brevity I chose only enough to make my point, which I think can be clearly seen.
To give further evidence to my claim that Mexivada is a "real estate company" lets take a look at some releases from Mexivada regarding their "properties" and how they have optioned them out.
- February 1 2008 : Mexivada options Jefferson Options Gold/Silver Project to Stoneshield Capital. The release states "
Under the terms of the Option agreement, StoneShield can acquire an
initial 51% interest in the Property by incurring a total of
US$3,500,000 in exploration expenditures on the property as follows: a
minimum US$100,000 in expenditures on the Property to be incurred in the
first year following TSX Venture Exchange acceptance....In addition, StoneShield will make cash payments of
US$50,000 to Mexivada on Acceptance and US$50,000 to Mexivada on the
first, second and third anniversary dates of Acceptance". Much like Sphere, stonesheild "commenced" work on the Jefferson Property but...no results to be found.
- December 22 2009 : Mexivada Options Goldstorm Gold Project to West Kirkland Mining. From the news release "Under the terms of the Option agreement, WKM can acquire an initial 56%
interest in the Property by incurring a total of US$2,900,000 in
exploration expenditures on the property, $340,000 in cash payments". The payment scheme is broken down into payments over 4 years, with a 90k payment upon "acceptance". Kirkland has a release stating it has commenced drilling, but I cannot find a release where any results are stated.
- May 31 2010 : Mexivada Options Yecora Gold/Silver Property. They optioned it to a company named District Gold inc. In addition, DG will make cash payments of $50,000 to Mexivada within 30
days of the Effective Date and $50,000 to Mexivada within 90 days of
the Effective Date, and $25,000 on the first anniversary of the
Effective date, and the sum of $40,000 by the second anniversary of the
Effective Date, and $50,000 by the third anniversary of the Effective
Date, as well as issue to Mexivada 200,000 shares of DG
- May 25 2010 : Mexivada Executes options of Tellurium Gold/Silver Property : They optioned this property in Mexico out to a company called California Gold Corp, which traded on the OTC board. The structure was the same, cash payments of 40k and 50k. This company is actually quite funny as well, as they ended up becoming part of their subsidiary MV Portfolios; a companies whose current corporate activity includes suing Google over a virtual realestate mapping/viewing program that was, allegedly, stolen from them . The agreement between CLGL and Mexivada has since been terminated.