Colorado Gold Mines, Inc. f/k/a Cascade Springs Ltd (OTC:CGLD) with Another Pump

Back at the end of January some emails were flying around in an attempt to convince investors that Colorado Gold Mines, Inc. f/k/a Cascade Springs Ltd (OTC:CGLD) are a viable investment alternative. The subscribers were not impressed, though, and although the volume of the traded shares was higher than usual, the pump did nothing to stop CGLD‘s downfall. Promoters have been bracing themselves for a second round, apparently.

As their name would suggest, CGLD is just one of the thousands of small cap companies in the field of mineral exploration. Unlike some of their counterparts that we have had to deal with previously, they don’t have any properties, mines, equipment and other quite essential things that you need in order to dig out gold, silver, copper or whatever else might take your fancy.

CGLD prefer to publish a press-release every now and then stating that they have signed an agreement for an option to purchase some mining claims. The latest one came out at the end of January and it’s for some mines near Las Vegas. The agreement is well described in their latest quarterly statement which covers the three months that ended in December 2012, and having read through it, we are pretty certain that it is about to be terminated very soon.

You might be wondering how can we be so sure. Well, if you have read through the agreement and you are aware of CGLD‘s financial situation, you will be pretty convinced as well. Here’s a recap of the most important figures:

• total assets: $25
• total liabilities: $160 thousand
• revenue: $0
• loss from operations: $15 thousand

The agreement, on the other hand states that they should pay the vendors a total of $500 thousand by March 15 and that they should have a whopping $2.5 million on hand by August. You could say that the clock is ticking.

Is it even remotely possible that they will succeed? Well, if they sell their office, which just happens to be a luxury residential home in Las Vegas, they might just be able to raise some funds. Then again, as the financial statement discloses, it’s not really their property. In addition to this, if they do sell it, they might need to get back to their old corporate headquarters… which is a shed in the middle of nowhere. They probably won’t be happy about that.

In conclusion, the emails that are still getting tossed around by promoters say that CGLD, a company with $25 worth of assets, a luxury home instead of a corporate office and an option for mining claims that they can never exercise, are a solid investment option. It all sounds a bit silly, doesn’t it?

Then again, this is not the first time that we have looked into companies of CGLD‘s rank. 007 Stock Chat are amongst that most active pumpers of CGLD and they were also part of the promotional effort on 1st NRG Corp. (PINK:FNRC), coincidentally, also a mineral exploration company. That campaign took place on February 21 and it’s pretty clear what has happened since then. With all the above factors in mind, CGLD could follow in their footsteps very soon.