Today, Earth Dragon Res Inc (OTC:EARH) is making its first stock promotion with the hope to conquer investors’ heartsThese days, it is expected that the performance of EARH is entirely in unison with the company’s willingness to move rapidly ahead with its plans only for new gold projects. The rarely traded shares of EARH, pushed by a stock promotion, may bounce rapidly to faster roll down after the end of the campaign.
Obsidian Financial Consultants, Inc., the owner of stock promoter “Future Super Stock”, not only has been compensated forty thousand dollars for the above mentioned EARH promotional launch. Further more, the company expects to receive another one hundred twenty thousand dollars for investor awareness initiatives.
All above leaves the impression that behind the promoted gold play EARH stands a company with at least one drilling program accomplished. It also suggests raised in private placements by the company at least one million dollars in support of the implementation of the company’s ambitious plans about highly prospective gold projects in Africa, Ghana and Tanzania.
Unfortunately, more detailed due diligence on Earth Dragon Res Inc shows that the valued at $102.26 million business at the end of last November had total assets of $0, total current liabilities of $42 thousand and a working capital deficit of $42 thousand. What a scale, may one say.
Referring to the last company’s press releases about gold properties and gold projects, it is reasonable to mention one more aspect. In its last financial reports, filled with the SEC with a delay, the company reported only one mineral claim.
This is the so called Mountain Queen Lode Mining Claim, located in Clark County, Nevada, U.S.A. and “acquired ” at a cost of $6.5 thousand a few years ago. The right to conduct exploration activities on it expires this September. It was recorded in the name of Multi Metal Mining Corp., and with physical examination by Yuan Kun Deng, EARH’s former officer and director.
Looks like these days the company’s slogan “the attraction of gold” may actually result in recordable bouncing prices for the company’s shares. This may occur thanks to a stock promotion, since the company’s economic fundamentals could not support it.
