This is from another mining company's 10Q and it is for comparison. Like SIRG they are waiting to begin operations. If you will compare these 2 companies, you will see the same expenses, (SIRG are lower) note problems that SIRG has and their assets are secured by notes.
But there are 2 huge differences. SIRG did not and will not do a R/S.
SIRG's CEO did not pay for a pump and then dump his shares! Rod bought 9,700,000 shares, they were got given to him.
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CURRENT LIABILITIES:
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Accounts payable and accrued expenses
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$ | 253,504 | $ | - | ||||
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Notes payable
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250,000 | 250,000 | ||||||
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Convertible notes payable, net of discount
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500,000 | 402,778 | ||||||
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Derivative liability - convertible notes payable
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177,857 | 921,428 | ||||||
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Derivative liability - warrants
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294,384 |
April 23, 2012, the Company effectuated a 1,000-to-1 reverse stock split with respect to its outstanding shares of common stock, par value $.000001 per share.
On February 4, 2011, the Company entered into a Subscription Agreement with Whalehaven Capital Fund Limited , pursuant to which Whalehaven loaned the Company $250,000, evidenced by a promissory note which had a term of six months and accrued interest at a 6% per annum. In addition, pursuant to the terms of the Subscription Agreement, the Company issued to Whalehaven 300,000 shares of the Company’s common stock in reliance upon an exemption from registration for a private transaction not involving a public distribution provided by Section 4(2) of the Securities Act. On August 4, 2011, the Whalehaven Note matured. From and after August 4, 2011, the Whalehaven Note accrued interest at a default rate of 8% annually until March 30, 2012 when the maturity date of the Whalehaven Note was extended to June 20, 2012. Whalehaven subsequently assigned a part of the note in the aggregate principal amount of $130,000. On June 20, 2012, the maturity date of the note was extended to June 20, 2013. As of September 30, 2012, accrued and unpaid interest under the Whalehaven Note was approximately $31,000.
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Property and equipment
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September 30,
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December 31,
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2012
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2011
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Land
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$ | 468,447 | $ | - | ||||
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Machinery and mining equipment
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594,909 | - | ||||||
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Property and equipment
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1,063,356 | - | ||||||
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Less: Accumulated depreciation and amortization
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(37,519 | ) | - | |||||
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Property and equipment, net
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$ | 1,025,837 | $ | - | ||||
Their CEO contributed certain mining equipment with his cost basis of approximate $355,262 to the Company in consideration of the issuance of 29,000,000 shares of the Company’s common stock. Upon issuance of the shares of common stock, the Company valued the 29,000,000 common shares at $0.25 per share, or $7,250,000, $355,262 of which were recorded as property and equipment and the remaining balance of $6,894,738 of which is recorded as stock compensation expense.
And now their CEO is dumping his shares as the stock is over $1 giving him over $29M for his mining equipment!
| Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned | ||||||||||
| 1.Title of Security (Instr. 3) |
2. Trans. Date | 2A. Deemed Execution Date, if any | 3. Trans. Code (Instr. 8) |
4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) |
5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) |
6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) | 7. Nature of Indirect Beneficial Ownership (Instr. 4) | |||
| Code | V | Amount | (A) or (D) | Price | ||||||
| Common stock | 1/22/2013 | S | 2974664 | D | $0.0001 | 26025336 | D | |||
| Common stock | 1/22/2013 | S | 500000 | D | $0.0001 | 25525336 | D | |||
| Common stock | 1/22/2013 | S | 141818 | D | $0.0001 | 25383518 | D | |||
| Common stock | 1/22/2013 | S | 141818 | D | $0.0001 | 25241700 | D | |||
