TSIF's Play of the Day: AMAROK RESOURCES INC (AMOK.OB)
"Play of the Day" are HIGHLY Volitile at the time the call is made. Many are VERY low volume equities. They may be big board stocks or tine OB stocks. We expect changes of 20% or more over a short time window. Due to the volume and the nature of these stocks we do not recommend making either a green or red thumb. Limit orders are HIGHLY recommended. Note, however, that they may not kick in until some volume moves, (minutes, hours, days, weeks, months). We are not responsible for CAPs scores gain or losses.
Amarok Resources, Inc: An exploratory Gold/Silver Miner ; Volume: 170,000 shares per day.
Catagory: Heavily Advertised, Junior/Exploratory Miner
Caught our attention through: TMFStockSpam
Claims in Nevada, claims in Peru....really a lot of potential. Hard to separate the current press releases:
Financing, 1,000,000 units at $1.00 each. Sounds good so far.
Regarding Peru: "Cueva Blanca Property Agreement Under the terms of the letter agreement, Amarok can acquire a 60% interest in the Property (subject to a 1.5% NSR) in consideration of:
a. making cash payments of $200,000 to St. Elias over a two-year period;b. issuing 100,000 common shares in the capital of Amarok to St. Elias; andc. incurring $1,500,000 in exploration expenditures on the Property over a three-year period." "an inferred resource of up to 190,000 ounces of gold and 945,000 ounces of silver on the property, to a depth of 100m. Using current gold and silver prices, this inferred resource has a value of over $225 million." MINUS extraction costs, *60% interest = ???
Regarding Nevada: Carlin, Nevada, Multiple Claims, Exploration Agreement, 75% share. "NEAR" other major miners "claims". Must spend $5.5 Million in the next 30 Months.
So let's see, they gobbled up rights at cheap money and they will produce....hmmmm....who knows?? When?? Who knows, but YEARS out.
Where did they come from???
18 Feb. 2010: 10Q: "Amarok Resources, Inc. (the "Company") was incorporated in the state of Nevada on October 23, 2008 under the name Ukragro Corporation with principal offices located in Zhitomir, Ukraine. The Company's primary focus was to establish SPA centers in urban areas, with our initial focus to be in the area of Zhitomir. The Company intended to provide the most up-to-date skin care treatments and massage services through these SPA centers." Spa Services to Gold miners.......!!!!
What did they pay for the "Carlin rights" in Nevada, this prosperous region "NEAR" other miners??
"On February 22, 2010, the Company entered into an agreement with Carlin Gold Resources, Inc, ("Carlin") in which Carlin assigned the Company all of its rights, title, and interest in an exploration agreement between it and Trio Gold Corp ("Trio"). The assigned exploration agreement was dated January 28, 2010. In consideration for the assignment of the interest in the exploration agreement, the Company paid Carlin $1 and issued 100,000 shares of its common stock."
Hmmm, $1!!! And 100,000 shares. Granted, Carlin/Trio is sitting on some good money IF a mine is ever established by Amarok AND they get it back if $5.5 Million is not spent in development. Still, would seem one of the other major miners would have upped that ante. Carlin got it's rights from TRIO who will get Royalties of $75,000 to $150,000 regardless of any development.
Amarok's financial condition, besides the $1 Million from an "single entity".
22 March, 2010, 10Q: " As shown in the accompanying financial statements, the Company is in the development stage and as of January 31, 2010, had a working capital deficiency of $3,669, and has not generated revenues since inception. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to obtain necessary equity financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. "
Regarding the CARLIN/TRIO rights they bought for $1 and 1,000 shares and other considerations and INTERNAL company officers:
Trio is a company incorporated in the Province of Alberta Canada. Trio's current President is Harry Ruskowsky the father of Ron Ruskowsky the Company's sole officer and director.
Roger Janssen is the sole officer, director and shareholder of Carlin. and a business associate of our sole officer and director Ron Ruskowsky.
Hmmm, I'm not so good at this relationship "thing". Is this right? Amarok bought rights to the Carlin Claim from Carlin and Trio. TRIO's President is the son of Amarok's only officer and a business associate of Carlin's sole officer???
"Results of Operations for the Three-Months Ended January 31, 2010
The Company reports a net loss of $1,500 for the three-months ended January 31, 2010. The net loss for the period is comprised of $750 for contributed services and $750 for contributed rent..
For the three-month period ending January 31, 2009, the net loss was comprised of the exact same amounts for contributed services and rent, plus other expenses of $20 for a total of $1,520.
Liquidity and Capital Resources: During the three-month period ending January 31, 2010 the Company's cash position remained unchanged at $0.
So let's see, you're going to invest in a company that spent $1520 in three months and has ZERO cash, but two great exploratory options????
Be my guest.
Disclosure: Play of the Days are only for those seeking more "thrill" and are impatient with slow stock market days where the S&P swings a mere 2% or less. They may triple or drop rapidly or linger for a year or more.
TSIF The Sky Isn't Falling Today....but I wouldn't stand under Amarok's share price.