Almost Time For The 2020 Exploration Company Zombie List!

What is a Zombie?
A TSXV- or TSX-listed company that has negative working capital [current liabilities exceed current assets].  Our current study is limited to mining and mineral exploration companies.

What are Continued Listing Requirements (CLR)?
If you go to the Corporate Policy Manual and look at Policy 2.5 there is a table that shows minimum working capital needed ($50,000 or 6 months of operations and G&A) and minimum mineral exploration activity required ($50k exploration in the latest year and $100k in the last two years).

What is supposed to happen if a company fails to meet CLR?
If it meets all but one requirement, the exchange is supposed to issue a notice giving it six months to repair the deficiency or it will be transferred to NEX or delisted.
If it is deficient in two or more requirements, notice is reduced to 90 days.

The requirements and remedies seem clear. Why put out a Zombie List?
When the exchange either doesn’t enforce its CLR rules or enforces them selectively, and when auditors fail to note that a company’s most material contract [the listing agreement] is at risk, investors who assume that a TSX or TSXV listing means the company is viable are basing their conclusions on incorrect facts.

How widespread is the problem?
Our latest stats for mineral exploration companies were assembled in December 2019. They show 398 TSXV Zombies with total negative working capital of over $1.7 billion. In addition, there are 47 TSX Zombies with total negative working capital of over $1.4 billion.
Add it up: 445 companies over $3.1 billion in the hole. And that’s not including CSE exploration listings with negative working capital. We’ll save those figures for another day.

Valuable! from an interview with Doug Casey

Technology has been advancing at the rate of Moore’s Law for the past 200,000 years. That curve finally passed the knee joint and has been going towards vertical for the last 200 years. But heretofore a major thrust of technology has been to make things smaller. You’ve seen the computer fall from room size to iPhone size. That’s true with all electronics. You’ve seen engines go from big, inefficient steam engines to small, highly efficient jet turbines. Miniaturization has been great. It almost always makes things lighter, more efficient, and cheaper.

Nanotechnology, however, takes a totally different approach. Nanotechnology is all about engineering things from a molecular level and making them larger. In essence, it’s the construction of machines, atom by atom, using molecular-sized assemblers, guided by molecular-sized supercomputers. I did a chapter on this in Crisis Investing for the Rest of the ’90s. At the time, not one person in 100 had ever heard of nanotech, or had a clue what it was. In its ultimate form, nanotech – the use of molecular-sized assemblers and supercomputers – will change the character of reality itself. Totally and unrecognizably.

It amounts to pixie dust, making it possible to manipulate the 92 naturally occurring elements into basically anything, cheaply and easily. Imagine an infinitely powerful 3-D printer. But that’s too conservative an image. Better, imagine a pile of dirt that – based on what the assemblers are instructed to do by the supercomputers – self-assembles into anything you can imagine. That’s the ultimate evolution. It’s hard to predict when that will happen. But I suspect that science fiction is way too conservative. Especially in regard to its time horizons.
Looking just at the present and very near future, however, it’s becoming possible to fabricate totally new materials, like carbon nanotubes, that are vastly more capable than any “natural” material.

Progress is being made, albeit slower than I expected. We can – in fact this was first done 30 years ago – manipulate individual atoms and move them around to spell words. Admittedly, that’s something of a sophisticated parlor trick with limited practical applications. But it gives you an idea of what has already been done.

But here’s the point that I’m making. When we arrive at the point where submicroscopic assemblers – guided by submicroscopic supercomputers – can disassemble compounds and reform them into different compounds and then reassemble those into large objects, literally anything becomes possible. We will have created, in effect, pixie dust you’ll be able to throw on the ground. Then, if it’s programmed to, it will pick out atoms of any of the 92 naturally occurring elements, and assemble them into anything that you’d like. It’s literally magic.

That’s the ultimate evolution of nanotechnology. That’s the direction that it’s ultimately headed towards.
For 30 years I ran something called the Eris Society, here in Aspen, Colorado, where I’m talking to you from right now. At those conferences, which were strictly invitation only, we had people that were leading lights in many fields. Everybody from Paul MacCready, the inventor of the Gossamer Condor, and Burt Rutan, the designer of SpaceShipOne, and Phil Zimmermann, who invented Pretty Good Privacy (PGP), all the way to Sonny Barger, President of the Hells Angels, and Stewart Brand, who founded the Whole Earth Catalog. It was a fairly eclectic group. Lots of famous authors and people who’d done something outstanding, or weird.

We’d hang out for three days, most attendees giving a speech on what they knew about or were doing, and get to know each other. Eric Drexler is, in fact, the godfather of nanotechnology and wrote the seminal book Engines of Creation. He was standing on the shoulders of Richard Feynman, who first explored the concept in a speech he delivered in 1959 called “There’s Plenty of Room at the Bottom.” As you’d expect, Drexler is a very bright guy. I got to know Eric at Eris, though I haven’t kept up with him since then. But, it was clear to me that this is the way technology would eventually be the ultimate evolution of the material world.
The first big applications will be in material science and biotech. The centerpiece, the star of the show, is the carbon atom. Let me retail a few basic facts. The carbon atom has some unique advantages. It’s a simple atom, with an atomic number of only six, and a light atom, with an atomic weight just over 12. Because of the way it’s structured, it can form extremely large chains with itself, and complex ones with other elements. As I’m sure you know, carbon is central to all life as we know it. Every living thing is built around the carbon atom, and we know of at least 10 million different carbon compounds. That last fact is why carbon and nanotech will be huge in the biotech arena.

One relatively trivial biotech application would be the creation of tiny machines which, released into your bloodstream, would cleanse your arteries of plaque. Or attack cancer cells very precisely and selectively – no more necessity to use surgery, radiation, or chemotherapy. We’ll look back at cutting, burning and poisoning cancers as primitive, the way we now see 19th century medicine.

But perhaps the first mass nanotech application will be with graphene. That material is pure carbon, like graphite or diamond, but in the form of a film only an atom thick. It’s extremely light, but much stronger than steel. How about a bulletproof vest that weighs nothing and is practically invisible?

It will revolutionize construction and architecture because it’s so ultralight. And flight. And spacecraft. It’s going to be huge when it finally comes into its own. It could be one of the biggest things since the start of the Industrial Revolution. The problem, of course, is cost. And making mass production economic. But costs are dropping exponentially. Just give it time.
People’s psychologies are always the ultimate problem, not technology. The aberrations that seem hard-wired in the human mind. It’s almost a replay from H.G. Wells’ book The Time Machine, which was written more than 100 years ago, where the human race has speciated into Morlocks and Eloi. I wonder if a variety of that scenario isn’t happening even now… but that’s a different subject.

Most individuals are tolerably rational in their own lives. But the more of them you put together in a group, it seems the lower the common denominator has to be. The larger the group, the more it acts like a mob, and the more dangerous it is. This is the problem with the global consciousness being fostered by the mass media, social media and the Internet. Humans seem to be mutating into a hive mind. Or various hive minds.

Meanwhile, the technology is advancing, as I said, at the rate of Moore’s Law, and the curve is now going vertical. That’s the good news. Technology is making it possible for humans to do almost anything imaginable.

The bad news is that we’re still basically naked apes. Highly evolved chimpanzees, melding into a hive mind. Unfortunately, our psychological makeup hasn’t changed since the days of monkeys beating each other on the head with sticks. There hasn’t been serious evolution in moral thinking, or philosophical thinking, for many years. In fact, you can argue – just based upon the 20-odd people who want to be the Democratic candidate for President – that the level of philosophical, economic, moral, and political thinking is actually degrading.

This is a gigantic problem. It’s one thing when monkeys can attack each other with sticks. It’s something else when they can attack each other with not just atomic weapons, but things that are much more advanced. Which is going to be the case with nanotechnology.

Naturally, one of the objections to advancing nanotechnology is: What will happen if “bad guys” get control of it, and unleash it? Well, of course that’s a problem. But it’s just a subset of the bigger problem we’ve just discussed. Namely, “What could possibly go wrong if you give nanotech to smart, but ethically primitive chimps?” But here’s an even better question: “What if the assemblers themselves get out of control, on their own?” What if it turns into something like the Sorcerer’s Apprentice from the Disney cartoon that everybody’s seen? If the assemblers and computers keep replicating each other at a geometric rate, isn’t that going to turn the whole world into a massive grey goo?

Well, that’s theoretically possible. Probably not practically possible. But who’s to say? Remember, nanotech in its ultimate form is going to be not only the biggest thing that’s ever happened, but perhaps the biggest thing you can imagine. Among other things, it can probably solve the problem of life itself – at least if you assume life is a purely physical phenomenon. That being the case, I’d say any risk is worth taking.

I think about the possibilities because I’m essentially a solipsist. There are many varieties of solipsism. But essentially solipsism holds that anything that you can imagine is possible, and all of reality is basically a creation of your mind. So, yeah, things could get really wild and crazy in the future with technology in general, and nanotechnology in particular.

Although its evolution’s been slower than I expected so far, it too is advancing at the rate of Moore’s Law. It’s going to be magic. Just hopefully not black magic.

Will Canada Be Left Behind?

SEC looks to add more “Accredited Investors” to boost funding of smaller companies

The SEC is moving ahead with changes to the “Accredited Investor” definition which would allow a significant number of new individuals and institutions to invest in private securities offerings.

The new proposal would permit those with the financial knowledge and sophistication to be considered Accredited Investors, regardless of annual income or net worth.

These changes are considered an important component to help drive more investment in smaller early-stage enterprises which the Commission hopes will encourage them to go public earlier in their growth cycle. https://lnkd.in/gJ9skmJ

Let’s Not Repeat The Mistake

This morning, I got an email from the Conservative Party begging for money under the pretence of getting prepared for the next election. Here was my reply [with a copy to Andrew Scheer]:

If the Conservative Party wants any more money out of me, it will have to ditch Andrew Scheer – preferably immediately.

Under his weak leadership, the Conservative Party was unable to take advantage of the gifts that kept on giving: JT and his antics, not to mention his band of deluded, law-breaking ministers, and the totality of their divisiveness.

The Conservative Party is dead in the water with him at the helm.  The change has to be made now to give time for a new leader to get the party ready for the next election – which will presumably be before the scheduled date.

So Much Fun!

http://seguroprojects.com/Mohave.html

I thought I might get out of the active side of the mineral exploration business when I optioned out the last of my really good properties earlier this fall. #177.

Good luck with that!

I have teamed up with an expert geologist, newly retired from the BLM, who has identified three targets in Mohave County, Arizona, that have to be worked on.

There’s gold and more in them thar hills, and he’s had plenty of time to find the best prospects.

In no particular order, except they have to be listed:

1) An epithermal, low-sulfide disseminated gold target located along an extensive fracture break.

2) An intermediate sulfide vein gold-silver deposit with a strike length exceeding one mile.

3) A possible Cu-Au-Mo porphyry deposit in an area that is acknowledged elephant territory.

These properties are all early stage, so we’re going to be wanting to see work commitments in addition to lease option payments. The only deals we will be doing will be win-win, so rest assured that sincere expressions of interest from qualified companies will be treated with enthusiasm and respect.

A word of caution on target # 3: it’s big and will need a lot of work, and will be priced accordingly.

Better an email to ts@seguroprojects.com than a phone call to 778-991-1267 but I will be happy to receive either one.

Find a Leader!

Reality: Oil is essential – worldwide.    #oil

Successive Canadian governments (Liberal and Conservative) have proven completely inadequate at anticipating and providing for world events over which we have no control but that can affect our ability to operate.

Does anybody:

1) notice the growing problems in the Middle East?

2) wonder why we continue to have such heavy reliance on Saudi oil? (we paid to import $3.6 billion in 2018)

3) really think that any of the people up for election have the understanding and capability to get us out of this mess?

If you answered ‘yes’ to 3, please contact me as I have a bridge to sell you.

Who Should Be Interested In Market Scam[s] Of The Year?

Yes, we’re talking the BridgeMark Group and who should be interested:
For starters, those who bought into the private placements of the companies involved and those who owned or bought shares in the companies involved. It would be a good idea to contact Paul Bennett pb@hbmlaw.com 604-639-3668 as he is launching a class action suit

Next we have a veritable alphabet soup including BCSC, CSE, TSXV, CPABC, BCREA, CNV, CRA
A comment on each:

#BCSC [BC Securities Commission]: highly motivated, but operating under certain limitations. See my post of 26 June 2019.
#CSE [Canadian Securities Exchange] and #TSXV [Toronto Venture Exchange]: highly motivated to oust the crooks and the dummies who enabled them.
#CPABC [Chartered Public Accountants of BC]: should be extremely interested in helping weed out its members who played key roles in this scam and have put the profession in disrepute, but so far apparently has been doing nothing (in hopes that the scandal will go away?). Weak move, or lack of move. Disclosure: I am a CPA, CA.
#BCREA [BC Real Estate Association]: not sure if it has done anything yet.
#CNV [City of North Vancouver]: Its ex-Chief Administrative Officer, [Ken Tollstam, CPA, CA], was in the thick of things and working as CEO or CFO of several of the miscreant companies while still ostensibly working full-time at the CNV. I wonder what computer[s] he was using?
#CRA [Canada Revenue Agency]: haven’t heard anything yet, but the chances of generating some lucrative recoveries should mean it won’t stay on the sidelines forever.
#BC Civil Forfeiture Office: it is already involved as you can read in one of the links in the summary below.

There’s an excellent summary of the goings-on here
https://www.nsnews.com/search-results-7.6424?q=bridgemark with multiple links.  Thanks to the North Shore News!

The most active parties at the moment appear to be the various and numerous lawyers who have taken on the task of somehow enabling their clients to escape the consequences of their actions. Party on, and charge your clients a fortune. Just remember to collect now while they can afford to pay you.