Interesting to note... re SGX Resources, the last company I posted about here, back in August of 2014:
The last news posted on their website was April 23, 2015, announcing a default:
SGX PROVIDES NOTICE OF DEFAULT
That's still the headline news on their webpage... They were late filing, as they didn't have the money to file their SEDAR reports... so they requested (and got) only a management CTO until they could get current. They were selling a property for $130K just to raise enough $ to get current on the required filings, and maybe even keep one or two of the lights on ? Since then, they HAVE updated their filings, which you can see on SEDAR... they just haven't bothered spending any money to update their own website to tell you that... leaving the ugly headline up front there.
The recently updated filings are pretty ugly, too, though... Essentially, they're flat broke, have no income... and they owe about $2 million, half to management for back pay, and the other half in around a $1 million of that which is tied to collateral interests in their leases. They have opted to shut down to the bare bones for the duration of the investment funding drought now being inflicted on all the junior mining stocks...
From the SGX Resources updated MD&A May 29, filed for the period to March 15:
"BUSINESS ENVIRONMENT and OUTLOOK
"Due to weak capital markets for junior mineral exploration companies, Management with the support of the
Board of Directors has reduced exploration activities to conserve capital. This involves the curtailment of
exploration activities and the reduction of administrative overheads to an absolute minimum until such time
that the capital markets are more supportive of junior exploration projects. The Company will need to raise additional working capital in the coming months, as it does not have sufficient working capital to fund the ongoing operations. In the current financial environment, there is a risk that the Company will be unable to raise sufficient funds, thus jeopardizing the Company's ability to continue as a going-concern."
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FWIW... the $1 million that they owe and can't possibly pay... is owed to San Gold Corp. San Gold, although it is actually a significant producer, and one that should still be profitable... is having its own difficulties in making debt payments, given inefficient operations ($1200 costs), the persistent decline in the price of gold, and purposefully obstinate lenders who aren't willing to cooperate to enable a restructuring that would make the company sustainable. In their June 5 news release and filings San management addressed their inability and failure to work their way out of the court protection they've been operating under:
"Subsequent Events
- Announced April 15, 2015, the suspension of all mining and milling operations.
- Obtained an extension to the court-ordered Stay Period until June 22, 2015 for the Company's proposal trustee to file a proposal to creditors.
- Announced May 28, 2015 that no third-party bids were received from the SISP and that the Company will become bankrupt upon the conclusion of the Stay Period."
And, that looks like it was today... June 22...
So, expect SGX Resources to follow San Gold down the tubes... just as soon as the San Gold creditors come calling to collect what's owed them... and take in the collateral.
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