What's up with Powertech/Azarga Uranium suddenly clamming up? Apparently the company is in possession of some information regarding the aftereffects of its proposed mining operation in the southern Black Hills of South Dakota, but won't release the data to the public. The August 9 piece in the Rapid City (SD) Journal notes that "Powertech President Dick Clement said Friday the information was "insignificant" in terms of how the uranium process at the proposed Dewey-Burdock uranium mine would actually work," to which I can only say, buh-loh-ney. First off, I think the public should be judge of its significance. Second off, if it's so damn insignificant, why the reluctance to disclose it? This rather cavalier approach to dispensing what could be material information smacks of stone-walling and a lack of respect for the citizens of South Dakota. As a law-abiding, tax-paying resident of this state, I insist on knowing what this hidden data is all about. Are you paying attention, state and federal regulators?
This company's actions regarding the permitting process of its mining venture in the Black Hills, known as "Dewey-Burdock" because of its location, just keep getting curiouser and curiouser with each passing news release. As if last year's abrupt write-off of its centerpiece mining venture in Colorado wasn't a bad enough blow to the company's credibility, its subsequent financial dealings that created its current incarnation (merging what was then Powertech, Inc. with Azarga Uranium in a deal that took place this year) raised some interesting questions, the first of which was why on earth its chief exec, Alexander Molyneaux, lied about the progress of the company's permitting process regarding Dewey-Burdock. The second was, why on earth wasn't Molyneaux called on this by securities regulators in Toronto, Canada, where the company's stock is listed?
The third question? It's the one that raises suspicions of shadiness. What's the story on Blumont Mining of Singapore, which has emerged as the most significant entity in the company's structure? Blumont has been targeted by Singaporean regulators and police officials for investigation after a collapse in its stock price last Fall that wiped out billions of dollars of shareholder equity. All of Blumont's records dating back to January, 2011, have been seized as part of the investigation. It's common tie with Azarga? Mr. Alexander Molyneaux, who has already been exposed as a liar regarding the Dewey-Burdock permitting process.
I'll be the first to extend a presumption of innocence regarding the Blumont investigation. But I'll also be the first to call for some consideration of this company's status with regard to its security regulators and inform South Dakota's public that we're dealing with a company that has a history of sudden write-downs and share prices that abruptly obliterate stockholder equity. These are facts. You can draw your own conclusions. I've already drawn mine. Get these people out of South Dakota.