Wednesday, April 15, 2015

Azarga (nee Powertech) Uranium Gets Busted. The Would-Be Mining Company In The Black Hills "Clarifies," "Withdraws," And "Removes" Public Statements About Its Prospects.

     'Bout time.  Azarga (nee Powertech) Uranium, the outfit that wants to forever alter the
Dewey or Don't We?
I Say We Don't.  I Can't Trust Azarga Uranium.
(photo from sdpb.org)
composition of the groundwater in our precious Black Hills just got seriously caught over-hyping its prospects on its mining venture in South Dakota--and other spots around the world. Regulators at the British Columbia Securities Commission (BCSC) took Azarga to the woodshed and are forcing the firm to give the public a realistic, not pie-in-the-sky, assessment of how things are going with its Black Hills ("Dewey-Burdock") mining venture that has been bogged down in the permitting process for years.  

     This company, whose stock (AZZ.TO) trades for just a few cents a share (less than 40 cents as of yesterday's close), has been the subject of numerous complaints filed with BCSC since last year.  Last January I filed a complaint with Canadian regulators about Azarga's numerous misleading public statements about the progress of its permitting process, which led British Columbia securities authorities to open a complaint file (File #20150123-13143/ Azarga Uranium Corp. AZZ.TO) on the company.  I know that several letters from other sources followed mine.  The upshot seems to be that overseers at BCSC have been following the company's filings and public statements with some scrutiny that resulted in their demand that Azarga clean up its act.
     Here's some of the language that the justifiably chastened Azarga this morning has used to explain what it has to do:  1) "The company is clarifying certain deficiencies;" 2) Its statements on the Black Hills project "did not include the necessary cautionary language required;" 3) And, in my view the most damaging to its over-hyping tendencies of all, Azarga had to state the following:  "The
Seeing Through Azarga Uranium
I'm With You Guys.
(photo from dakotarural.org)
preliminary economic assessment of the Dewey-Burdock project and the Centennial project are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessments will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability."  

     These remarks are a concession to the reality that Azarga's venture is highly speculative in nature and that its prospects don't have any economic viability demonstrated by its explorations.  This is so egregious an oversight that the company's statements include a closing notation that "The Company has removed the Presentation and certain other non-compliant Disclosure Documents from its website until updated documents can be posted to correct the identified deficiencies."   Wow. Could you imagine your own business being required to expunge misleading and deficient information from its website?  These people are effectively being called liars.  
     South Dakota authorities, both in environmentally and financially regulatory capacities, need to look at this.  South Dakotans should be wary of letting a company like this come in and start drilling holes in our Black Hills. They've already been caught misleading--some would say outright lying to--their investors.  What does that say about the nature of their statements and commitments to South Dakotans?

ADDENDUM FOR READERS WHO WISH TO FILE THEIR OWN COMPLAINTS TO THE BRITISH COLUMBIA SECURITIES COMMISSION:  You can e-mail them to  inquiries@bcsc.bc.ca   and reference File #20150123-13143/ Azarga Uranium Corp. AZZ.TO

1 comment:

  1. I'm not sure that these facts will sway either the mineral or the environmental boards in SD. Honestly, South Dakota's so-called regulatory agencies are a scammer's dream. They are excellent prospects to pitch a sale of the Brooklyn Bridge, or Florida swamp property. Say the word "jobs" in every other sentence and you will get your permit.

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