Small cap mining stocks Suburban Minerals Corp (OTCMKTS: SUBB) and Source Gold Corp (OTCMKTS: SRGL) have been getting some attention lately as they are looking for gold and diamonds while promoters are also looking for gold or diamonds with at least one of these stocks. But will investors find gold with these small cap stocks? Here is a quick reality check to help you decide:
Suburban Minerals Corp (OTCMKTS: SUBB) is Acquiring a Diamond Mine – In the Central African Republic…
Small cap Suburban Minerals Corp is a development company engaged in the evaluation, acquisition and exploration of highly prospective mineral properties. The Company has an option to acquire a 100% interest in a Chilean Maritime concession located in the area known as Bahia de Lota (Lota Bay), Municipality of Lota, Concepcion province, Chile. On Friday, Suburban Minerals Corp rose 6.09% to $0.244 for a market cap of $4,400 plus SUBB plus the stock is up 12,100% over the past year and up 12,100% over the past five years according to Google Finance.
What’s the Catch With Suburban Minerals Corp? According to various disclosures, transactions of $2k, $12k, $22k and $25k have or will occur to mention Suburban Minerals Corp in various investment newsletters. Last Tuesday, Suburban Minerals Corp announced the signing of a letter of intent to acquire a producing Diamond Mine in the Central African Republic – a country that has been in the news lately for being in chaos and there are even reports of cannibalism occurring. According to the letter of intent, the diamond mine will be acquired with the issuance of restricted company stock as well as carry a royalty component with the definitive agreement expected by or before January 30, 2014. Otherwise and last Wednesday, Suburban Minerals Corp announced the appointment of Tim Sperling as its new President and CEO. Previously, Mr. Tim Sperling was the president of ENC Security from 2009 to 2012 where he secured important venture capital financing plus negotiated licensing agreements with several global clients. A quick look at Suburban Minerals Corp’s financials reveals no revenues; net losses of $48k (most recent reported quarter), $41k, $19k and $14k for the past four reported quarters; and no cash to cover $722k in current liabilities at the end of August. So its hard to see how Suburban Minerals Corp will be able to acquire a diamond mine located in a country that is in chaos.
Source Gold Corp (OTCMKTS: SRGL) Sank 14.29%
Small cap Source Gold Corp is an exploration-stage company involved in the exploration of mineral properties. On Friday, Source Gold Corp fell 14.29% to $0.0006 for a market cap of $73,984 million plus SRGL is down 91.2% over the past year and down 99.9% over the past five years according to Google Finance.
What’s the Catch With Source Gold Corp? According to various disclosures, no transactions have occurred to mention Source Gold Corp in various investment newsletters plus I am not seeing any news from the company beyond SEC filings. A quick look at Source Gold Corp’s financials reveals no revenues; net losses of $134k (most recent reported quarter), $122k, $147k and $114k for the past four quarters; and no cash to cover $403k in current liabilities at the end of October. Given the lack of news and the current financials, its hard to explain why Source Gold Corp fell 14.29% on Friday.