Atwgold's Blog

$ 1.5 million US owing on Burnakura

Posted in Uncategorized by atwgold on April 13, 2010

There simply aren’t any suitable adjectives left, nor nouns either, after the latest ATW Gold annoucement. Stakeholders may have been overjoyed to hear that Jinka Resources somehow managed to come up with a $ 212,000 deposit but brutalization on buttock quickly followed with news that yet another $ 1.5 million US was due and payable along with, who bloody cares at this point anyways, 2 million more shares from treasury.

Promises of massive proceeds towards working capital mere days ago have petered out somewhere. A mystery almost as deep and wide as what this public Company supposably “does”.

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ATW Gold receives deposit for Burnakura sale

2010-04-12 15:48 ET – News Release

Mr. Brent Butler reports

ATW RECEIVES NON-REFUNDABLE DEPOSIT FOR SALE OF BURANKURA

ATW Gold Corp., further to its news release in Stockwatch of April 1, 2010, has received the non-refundable deposit of $212,650 (Australian) from Jinka Minerals Ltd. as per the letter of intent (LOI) for the sale consideration of $4,253,000 (Australian) for the acquisition of the Burnakura mine project.

The company has entered into a shares-for-debt settlement with RUC Mining Contractors Pty. Ltd. The company, prior to the settlement, owed RUC a total of $2-million (Australian), which was due to be paid on June 30, 2010. The debt was incurred by the company’s Australian subsidiary in connection with RUC’s maintenance services contract for the Burnakura mine project and the mill associated with it. Under the terms of the settlement, the company is to pay RUC a total of $1.5-million (Australian) and issue to RUC a total of two million common shares at a deemed price of 25 Australian cents per share. The payment of $1.5-million (U.S.) and the issuance of the two million common shares are due to occur upon the company selling its Burnakura mine project.

The settlement is subject to the approval of the TSX Venture Exchange.

The LOI and the sale of the Burnakura project therein is conditional upon receipt of any required Australian regulatory approval, the receipt by the company of any required Canadian approvals (including the approval of the TSX Venture Exchange, if required), Jinka completing due diligence to its satisfaction, the company and Jinka agreeing to the list of plant and equipment included in the sale, and the execution of a definitive agreement on or before May 31, 2010.

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2 Responses

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  1. thamnosma said, on April 13, 2010 at 3:38 am

    RUC is taking 2 million shares at 25 cents a share? When will this ever be worth 25 cents? I guess they’re happy getting 1.5 million. Of course, Jinka has to fork over real money before RUC gets that. Ludicrous.

  2. atwgold said, on April 13, 2010 at 4:45 pm

    This monkey unclear if the debt is in US or AUS bucks, the dolts used both in the NR.

    In case anybody is keeping score thats a minimum of 8 million shares flipped off to satisfy creditors.

    This gut shot must have been conjured up in the past few months as there was no mention made in the financials anywhere before. Is it a arms length transaction? Can a body be blamed for questioning every ridiculous utterance from these scamtards now?

    Will deal close, will $ .03 remain after these scumdogs are finished looting, will the BCSC get off its 100% useless arse before this thing goes no bid?

    What a sad circus side show that absolutely should be halted in the public interest.


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