SGGM as dividend vehicle?

[digby]

I have been reading on some of the other boards about CIM being used as the vehicle for safeguarding the claims of CMKX. I was thinking...SGGM would be a good vehicle for this also. They need to fix their filings so that they are clean, but with no real activity, this would not take very long.

What would happen if:
a) The Diamond Claims stay under CMKX with our JV partners doing all the claim development;
b) The Zinc, vermiculite, pot ash and some other IUM's stay with CIM;
c) Uranium, platinum, gold and the balance of the IUM's stay with SGGM;
d) SGGM is designated as the umbrella under which our JV partners form the mining conglomeration;
e) The claims that contain the oil sands and any copper or other industrial metals are sold off to China to raise revenue to develop all the above actions.

I'd think that we would be positioned just about where we want to be. It would force an open-market cover of all NSS and give us all a dividend to handle immediate financial needs that each shareholder is burdened with so they can afford to wait however long is required to see this fully developed. It would also provide the working capitol the company(s) need to bring this all on line.

[raidermike99]

digby said:

I have been reading on some of the other boards about CIM being used as the vehicle for safeguarding the claims of CMKX. I was thinking...SGGM would be a good vehicle for this also. They need to fix their filings so that they are clean, but with no real activity, this would not take very long.

What would happen if:
a) The Diamond Claims stay under CMKX with our JV partners doing all the claim development;
b) The Zinc, vermiculite, pot ash and some other IUM's stay with CIM;
c) Uranium, platinum, gold and the balance of the IUM's stay with SGGM;
d) SGGM is designated as the umbrella under which our JV partners form the mining conglomeration;
e) The claims that contain the oil sands and any copper or other industrial metals are sold off to China to raise revenue to develop all the above actions.

I'd think that we would be positioned just about where we want to be. It would force an open-market cover of all NSS and give us all a dividend to handle immediate financial needs that each shareholder is burdened with so they can afford to wait however long is required to see this fully developed. It would also provide the working capitol the company(s) need to bring this all on line.

I like it and thought this was their plan. SGGM said it was going to clean up the books but then they went silent because of the SEC investigation on them. I do still believe they are going to play some role in all of this just not sure yet.

[digby]

With the way that SGGM is coming up on all the boards of late (due to the pending revocation), I just thought we should look at some of the ways that SGGM could be a dividend vehicle for CMKX shareholders. SGGM did buy a stake in CMKX. Remember this?

9/2/2004 : LAS VEGAS--(BUSINESS WIRE)--Sept. 2, 2004--CMKM Diamonds Inc. (Pink Sheets:CMKX - News) is pleased to announce that the Company has finalized a joint venture agreement where St. George Metals, Inc. (Pink Sheets:SGGM - News) will purchase a 5% unencumbered and absolute interest in any and all mineral claims held by CMKM Diamonds, Inc. in consideration for $10,000,000 US Dollars and two hundred billion (200,000,000,000) restricted shares of SGGM. The Company has received a $2,500,000 payment with three additional payments of $2,500,000 anticipated within the next 30 days.

I remember the PR's that consummated this deal. If this is another means to lock in shorts for lifetime royalties, I'm all for it. If the dividend of SGGM shares is given out just after revocation, there will be no market within which the shorts can cover their position. In a revoked state, they can still trade on the gray sheets. It would put them in a position similar to CIM. If we were allowed to get CIM as a dividend, we should be able to get SGGM as a dividend.

Since it is still "clean", the NSS'rs will have to come to the company to get the shares necessary to cover (not legal for them to do this with an revoked stock), or they will have to pay the 5% lifetime royalty up to the time we do re-register.

There had to be a plan that required revocation for them to not have their financials filed. Being an empty shell and not doing any business except the share/money transfer to CMKX, there couldn't have been that much paperwork to file. I'd think less than a week by a competent accountant to bring their books and filings up-to-date. No risk for an auditor due to nothing much to review.