More News and Emails for Mission Mining Co (OTCMKTS:MISM)

Imagine the scenario, you have a private company that owns some mining claims to a property in Nevada. The mine itself contains all sorts of minerals like gold, silver, paladuim and a host of other elements found in the darker corners of the periodic table. Geological experts have been on site and they estimate that, if explored properly, the mine could yield as much as – make sure you’re sitting down – $720 billion worth of precious metals and minerals. Instead of doing everything you can to obtain the funds needed to start exploration, though, you decide to give up the rights… in exchange for 38 million preferred shares… from a company called Mission Mining Co (OTCMKTS:MISM).

This is what Western Gold Company, LLC did back in October 2012 when they sold the claims to a property called Gold Star Mine. The aforementioned preferred shares are convertible at a rate of 10 for 1 but even so, when you have in mind that MISM‘s stock is currently valued at around $0.12 per share, it’s not exactly a bargain, is it?

If MISM‘s website is to be believed, they have closed yet another agreement yesterday – the one for a mine called El Dorado in California. This time MISM acquired the rights from a venture called Colten Metals, LLC and the figures that we see in the announcement are just as mind-boggling as the ones quoted for the Gold Star property – 340 acres of land and 17 mines that could yield as much as 400 million tons of commercial grade ore. This time no details about the deal are disclosed but we are ready to bet that MISM haven’t closed the acquisition with cash.

Why would we say that? Simple – we have read through their latest financial statement. It came out on May 24, it covers the three months before the end of March and it contains the following figures:

• cash: $43
• current assets: $36 thousand
• current liabilities: $724 thousand
• no revenue since inception
• quarterly net loss: $26 thousand

Let’s get back to the scenario where you are at the helm of either Western Gold or Colten Metals. We can somewhat understand that you simply can’t find the financing needed to explore your multi-billion dollar properties (let’s face it, Western Gold and Colten Metals don’t even have websites) and you want to sell the rights. For some reason you decide that you don’t want to give them to serious gold exploration companies who will most probably give you quite a lot of cash. What could make you think that MISM who only started their digging-for-gold venture a couple of months ago, are the right choice?

A quick look through MISM‘s older reports reveals that their financial situation wasn’t much different from what we see today, and if that doesn’t change soon, there will be no minerals dug out of the ground meaning that the share price will remain low. This, in turn means that you have sold the mining claims at an enormous discount. What are the odds of Western Gold and Colten Metals taking on such a gamble?

Luckily for them, the paid pumpers have initiated quite a campaign on MISM and the first emails hit the inboxes shortly after the end of May 12’s trading session. Between May 13 and May 16 MISM gained as much as 162% in value. After that, however, there were a few red days and on Friday the ticker settled at $0.119 per share.

Today, though, with the news around the new acquisition and a with a new batch of emails sent out by Wall Street Scoop, Penny Stock Guru, Monster Trading Alerts, Hot Stock Ace Publisher, Penny Stock VIP as well as a few other promoters, the ticker will probably gain even more attention.

That doesn’t necessarily mean that the price will head north, though. Let’s not forget that pretty much the same newsletters took part in the pump for Great Rock Dev Corp (OTCMKTS:GROC) on May 1. While GROC did manage to gain some ground for a little while, it soon crashed which means that right now, less than a month later, the shares that inexperienced investors bought when the hype was on are 56% cheaper.

The threat of MISM following the same pattern is rather big which means that if you just want a quick trade and a profit, you should be extremely careful. As for the long run, with the financials that we find in MISM‘s reports, in mind, we have to say that success seems unlikely.