Numerous promoting e-mails were sent during the whole day, but the share price of FASV could not surge up even at market open. Included in various alerts since the end of March, it looks like the impact of the promotions is starting to fade away and the stock is losing ground. Yesterday, it lost 4.76% from the previous session and closed the market at exactly $1. Support level is found at $0.95 and it seems like it is high time the company provides some updates on its recently signed option agreements for three mineral properties in Nevada.
This months, the compensation paid for the promoting of FASV stock sum up to $14,600 for a total of 7 sent e-mails.
At the beginning of March, First American Silver former President, CEO, CFO, Secretary and Treasurer resigned. Mr. Thomas Menning was then appointed to all of these positions. According to the SEC filing, Mr. Menning has been semi retired for the last eleven years, but in that time he created two new ventures: Canadian American Mining Company, LLC. and All American Resources LLC. The latter is also the entity, with which FASV entered into the three option agreements in November last year.
To acquire any of the exploration properties, First American Silver has to make annual payments in the aggregate of $180,000, issue to All American Resources 300,000 shares its common stock and on or before the tenth anniversary of the option agreement pay to All American Resources either $1,000,000 or $2,000,000 (in the first case All American Resources shall retain a 2% mineral production royalty, in the second 1% mineral production royalty).
To date, FASV has issued 300,000 shares and has paid $30,000 in total. At the end of November 2010, the company had $238,205 in cash and no substantial debts. Additional funds will be required in any case to implement the growth strategy, which will most probably dilute the shareholders.
