Tuesday, November 26, 2013

Whatever happened to Liberty Silver, the scam stock that the OSC and TSX let the market get fleeced by?

So whatever happened to Liberty Silver?

Peter Koven wrote an update on them last month at the FP, if you need to refresh your memory. Quote from his article:
Last October, regulators in both Canada and the United States halted Liberty shares for two weeks after they soared to astronomical highs in a very short time. The move happened right after Liberty was heavily promoted by Mr. Genovese and a group of newsletter writers. It was later revealed that companies tied to Mr. Genovese sold more than eight million Liberty shares between the start of the promotional campaign and the trading halt, netting a large profit.
And of course you'll remember that this company suffered absolutely zero repercussions at the hands of the Ontario Securities Commission or the Toronto Stock Exchange. Except, of course, for a two-week halt and maybe a polite request to issue a news release with a bit of clarifying, restating, disowning and denying.

So how's the chart doing?

On the one hand, you could find a hundred other, less shifty junior miners with charts just like that.

On the other hand, the OSC and TMX Group haven't done anything about those other hundred companies' lies, deceit, misrepresentation, back-room deals, front-running, insider dealing or embezzlement either - that is, beyond the customary slap on the wrist and "could you perhaps issue a clarification press release?"

Thanks for destroying the Canadian capital markets, OSC and TMX!

Now here's the other Liberty Silver, who's probably pissed that her name's been associated with this Greek tragedy:


  1. All that and you missed the cherry on top....you must be losing your edge!


    Liberty Silver Corp., further to its news release of Oct. 4, 2013, has entered into an agreement in relation to a $1-million (U.S.) principal amount secured loan facility which has been increased to a principal amount of $1.21-million (U.S.) to be made available by BG Capital Group Ltd.

    The loan consists of up to $1.11-million (U.S.) of new credit facilities along with an additional $100,000 (U.S.) that will be used to repay the amount remaining outstanding under unsecured promissory notes previously issued to BG by Liberty, subsequent to the signing of the letter of intent relating to the loan. The company intends to use the funds from the loan for general working capital purposes, thereby affording the company more time to secure longer-term financing for the Trinity silver project.

  2. Good idea, the tie-in to the "real" Liberty Silver ... oh, just a sec http://worldofmining.com/the-curious-case-of-liberty-silver/

    1. Since you mentioned it, Sabina's royalty stream is worth absolutely $0 until Glenstrata builds Hackett. Which will be a long time, especially at a 10% discount rate. Nobody's building mines for the next while, so nobody will be building new mines in Nunavut for even longer. Nunavut doesn't work, period.

      Revett is a good little boring miner, but Rock Creek has been a doubtful play forever, and it's not like they'll ever get the capex to build that property. It's like a minnow trying to eat the planet Jupiter. But I'd be interested in watching Revett's cost-cutting if they start doing it again - they successfully rescued the company from bankruptcy in 2008, and I'd expect they probably still have a good rapport with their workers.

  3. Someday I'll get around to updating that blog post. Agree on Sabina but if gold moves higher it should move up smartly. I wrote that before the latest Revett setback and it's definitely dead money for now. But they're cashed up, smart managers including locals and good community relationship. Plus chairman Timothy Lindsey has been buying like a demon. Good pick for those with long time horizon, methinks.