hey john, what happened is this:
The long-awaited COC from Behre Dolbear ultimately came from Kilbourne, last November. They did COC in what was evidently a "cold" zone, and obtained only nominal readings of gold. But what really killed the stock was that IPM released fire assay results only; IPM's much-touted "recovery" method was deemed "not economic" by Kilbourne and then jettisoned by IPM. Also, the fire assay method discussed at the AGM that tracked IPM's recovery numbers (remember that?) was determined by IPM to be insufficiently reliable. This left the company with, at best, property with some gold, but no economic way of extracting it, and no reliable means of measuring it.
The stock dropped considerably on this news.
Then, NASDAQ started investigating IPM's previous statements and contemporaneous knowledge about its prospects, and ultimately delisted the stock. IPM appealed, and even terminated Le Furlong, but was unable to prevent the delisting.
All of these events hampered efforts to raise additional capital to fund operations, and the company eventually ran out of money, prompting the bankruptcy filing.
On a more positive front, Dale Runyon has stepped in as a "white knight," and is putting together a MAXAM-IPM merger package, assisted by Aaron Cathcart and others. At this point, the merger contemplates issuing 1 share of Maxam for every three shares of IPM. Funding for the merger would come from a private placement of additional Maxam shares at 10 cents per share.
Regards, Otter |
