Maxam Gold Corp (OTCMKTS:MXAM) Stock Price Rising on Pumps

After the recent start of today’s trade session we can see that the stock of Maxam Gold Corp (OTCMKTS:MXAM) is going according to the expectations of the pump campaign. It made a jump to $0.0005, however, it is uncertain where it will go due to the high volume of traded stock.

It all seems like a big dumping and it probably is, considering the fact that Mr. Charles Langrill has a whopping 2.6 billion shares which are equal to 39% of the company’s stock. Today’s trading already surpassed the volume and price from yesterday coming to a current total of 140 million shares traded at a total trade value of $67 thousand.

After they bragged about how they got to Nicaragua as the people that the natives have waited all life long to give their gold on low prices, today’s press release says they are going to expand their operations into Honduras. We can’t tell what operations exactly they are expanding since they really have none apart from travelling on what seem to be vacations to exotic countries.

Since their last annual report covering the period ended December 31, 2012 filed according to the alternative reporting standard in OTC Markets haven’t shown any real numbers apart from estimated gold gains. Let’s take a look at the little information that we have about their financials.

cash: $0
current assets: $0
other assets: $1.3 million (nowhere listed what they actually are)
current liabilities: $1.4 million
total liabilities: $1.7 million
revenue: $0 (Q3, 2012)
net loss: $0 (Q3, 2012)

With those assets we can’t really see how they are going to buy even flakes of gold from the local indigenous population that according to them has been stacking it in anticipation of their arrival, let alone mine for gold.

We can’t even tell how they manage to pay for the trips to the countries they are speaking of (if they have gone there at all is another question). Furthermore the question of whether Mr. Langrill is just sitting in his chair paying pumpers and then dumping the massive amount of stock that he has also arises.

All in all MXAM has shady filings (listed as OTC Pink Limited Information), no money, no actual mining operations and a President that owns 2.6 billion shares. You can decide where to go from here, however, be sure to make your own due diligence and proceed cautiously.