Update: CMKM Diamonds, Inc. - Never Can Say Goodbye
Investigative Reports
September 3 2006
Never can say goodbye
No, no, no, no, I never can say goodbye
Even though the pain and heartache seem to follow me wherever I go
Though I tried and tried to hide my feelings
They always seem to show
Then you try to say you're leaving me and I always have to say "No"
Tell me why is it so?
That I never can say goodbye
No, no, no, no, I never can say goodbye girl
Every time I think I've had enough
And start heading for the door
There's a very strange vibration
That's piercing me right to the core
It says "Turn around you fool
You know you love her more and more"
Tell me why is it so
Don't wanna let you go!
I keep thinking that our problems
Soon are all gonna work out
But there's that same unhappy feeling
And there's that anguish
There's that doubt
It's that same old dizzy hang-up
Can't do with you or without
Tell me why is it so?
Don't wanna let you go!
I never can say goodbye girl, uh baby
I never can say goodbye, no, no, no, no, uh
I never can say goodbye girl, uh
I never can say goodbye, no, no, no, no, uh
("Never Can Say Goodbye," songs and lyrics by Clifton Davis).
Gloria Gaynor (or was it the Jackson Five?) could have been singing about CMKM Diamonds, Inc., the failed Canadian mining enterprise that has defaulted on virtually every significant commitment to its shareholders. We throw in "virtually" to be generous, since there is nothing to suggest CMKM ever has delivered promised results.
After a prolonged silence, CMKM has resurfaced, uttering words of encouragement to disheartened investors. Will the Company's promises once again prove to be hollow – as they have so many times before?
CMKM, which boasted ambitious plans to mine for diamonds and other valuable minerals in venues from Canada to Ecuador developed a cult-like following of supporters who clung to the belief that the Company had the inside track on the mother lode. See, CMKM Diamonds, Inc. - A Familiar Drill. At the height of its hype and popularity, CMKM was trading billions of shares a day, fueled by rumors of imminent bonanzas and joint ventures with other struggling, financially-challenged putative mining companies, many of whose shares traded on the over-the-counter market. See Buddy Up! - CMKM Diamonds, Inc.; U.S. Canadian Minerals, Inc.; Juina Mining Corp.; St. George Metals, Inc.; and United Carina Resources Corp.
Perhaps no one should have been surprised when CMKM, having failed to produce more than microscopic evidence of diamond dust, succumbed to an assault by securities regulators and gave up the public ghost. The Securities and Exchange Commission targeted CMKM in March 2005, first suspending the Company's shares and then seeking to terminate the registration of all CMKM securities because of the Company's bogus attempt to avoid its responsibility to file public reports. See SEC Suit Against CMKM Diamonds, Inc. Could Sink Company. At first CMKM resisted the SEC's efforts but the Company's dismal position soon became evident. At a hearing, the Company's CEO Urban Casavant declined to testify, invoking his Fifth Amendment privilege against self-incrimination, and its "white knight" director Robert Maheu revealed how little he knew about the Company, its history, its operations and its condition. Shortly after the hearing concluded, CMKM dropped its opposition to the SEC's attack, and surrendered registration of its shares.
But the Company, as always, had good news and promises for its shareholders. CMKM said that it would distribute its assets to its shareholders (sans Casavant), including upwards of 50 million shares of stock in another struggling mining company, Entourage Mining Ltd. (OTCBB: ETGMF) – subsequently reduced to 45 million after Entourage backed away from a portion of its deal to acquire CMKM's unproven mining interests. The shares were to be held and distributed by something called the CMKM "Task Force," a triumvirate comprised of Mr. Maheu and two attorneys who had played a role in the efforts by the Company and its shareholders to forestall the inevitable delisting of shares.
The Task Force devised a plan for shareholders to identify themselves and stake their claim to Entourage shares, setting forth a flurry of demands on brokerage firms and a frenzy of faxes from public investors who scurried to meet a series of deferred deadlines. Despite the flood of activity, it would appear that the process has not concluded, the Task Force has not definitively identified the Company's shareholders and the Entourage shares have yet to be distributed.
The Company's shareholders might be frustrated if they take a peek at Entourage. That Company still has no revenues and its cash position, which was almost $480,000 on December 31, 2005, had dwindled to $8,000 by June 30, 2006. Are we about to witness CMKM redux?
In the midst of this uncertainty, CMKM has reemerged, seeking to reassure its faithful flock of true-believers. On August 28, 2006 CMKM issued a press release, including a statement from Urban Casavant, who evidently no longer feels constrained to remain silent. CMKM revealed that the Task Force, which had been dissolved on June 6, 2006, had not completed its principal task of identifying CMKM shareholders and distributing assets. Instead, as it departed, the Task Force recommended that the Company file an interpleader action, asking a federal court to identify bona fide CMKM shareholders.
That process could prove lengthy and costly. CMKM said that it had recently retained John T. Moran III, an attorney in the "Great State of Nevada," to pursue the court proceeding.
Casavant thanked the Company's "loyal and patient" shareholders "for enduring this extremely long quiet period that has had to take place in order for our Company to comply with regulatory issues and make plans for the company to continue moving forward." That could be his final word for awhile. The Company stated that Casavant "has been suffering from serious health related issues and is no longer able to carry on the day to day related activities of the company". Although Casavant will remain on the Board of Directors, CMKM promised to announce a new management team within two weeks and establish offices within the next 30-45 days – still more promises from a Company that has yet to deliver meaningful performance.
More promises? Will CMKM's fans continue to cling to hope? We end, as we began, with a musical thought:
Promises, promises
I'm all through with promises, promises now
I don't know how I got the nerve to walk out
If I shout, remember I feel free
Now I can look at myself and be proud
I'm laughing out loud
Oh, promises, promises
This is where those promises, promises end
I don't pretend that what was wrong can be right
Every night I sleep now, no more lies
Things that I promised myself fell apart
But I found my heart
Oh, promises, their kind of promises, can just destroy a life
Oh, promises, those kind of promises, take all the joy from life
Oh, promises, promises, my kind of promises
Can lead to joy and hope and love
Yes, love!!
Written by Burt Bacharach
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