|Naturally the goal of any improbable promotion of worthless Venture Exchange paper is to get the money. It matters not how, the ultimate achievement is to extract as much and as quickly as possible. Examining the financial statements of Fire River Gold is another clear and ridiculous lesson in this truth.|
During the previous 12 months the audited numbers reveal that $ 1.2 million was expended, bringing the 18 month total to $ 2.7 million.
In the latest 3 month period a whooping $ 437,000 went to the happy hunting ground, and that means expenses are accelerating rapidly for some improbable and unexplainable reason,most likely because a large number of dimwits supplied it.
And where is the money going? A very astute guess would be into the pockets of insiders in various ways, usually in the form of management fees, salaries, consulting fees, travel, promotional expenses and, drumroll, office expenses.
"The Company paid or accrued $142,445 to a company related to the Company by way of directors in common for office expenses."
And that's $ 24,500 per month in "office expenses" for an address already being used by every other mutt in the Barr stable, each paying similar "expenses" depending, naturally, on their ability to pay.
2303 West 41st Avenue
Canada V6M 2A3
A body examining the numbers will notice a discrepancy between what FAU is showing as a reclamation deposit on the Nixon Fork Mine ($2.6m) and the actual liability.
From latest financials ...
5. Asset Retirement Obligations
The Company’s asset retirement obligations consist of reclamation and closure costs related to its mineral properties. The present value of the estimated obligations relating to properties is $3,128,735 (30 April 2009 - $Nil) using discount rates at which cash flows have been discounted by 10%. Significant reclamation and closure cost activities includes land rehabilitation and reforestation, demolition of buildings and mine facilities, fencing, ongoing care and maintenance and other costs.
The undiscounted inflated reclamation and closure cost obligation at 30 April 2010 is $3,729,867 ..."
Based on these numbers, FAU stakeholders could well have an additional $ 1.1m in unfunded liabilities.