CB Gold men make millions after drill results
2011-11-02 12:06 ET - Street Wire
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by Stockwatch Business Reporter
Two Vancouver-based stock promoters, Fabio Capponi and Giles Baynham, have turned their $100,000 investment in CB Gold Inc. into more than $30-million in a little over two years. It is their first promotion.
Last week, CB Gold revealed eye-popping drill results from its Las Vetas gold property in Colombia, sending the stock to $1.82 from 68 cents over five days on 23.38 million shares. One intersection in particular, a 115-metre interval at 7.57 grams per tonne gold and 1.48 grams per tonne silver, caught the market's attention, bringing instant fame to the company's two founders. Although over the past two days the company continued to be active, trading 6.24 million shares on Monday and 2.84 million shares on Tuesday, the stock has slipped 28 cents to $1.54.
Before starting CB Gold, Mr. Capponi and Mr. Baynham worked at Endeavour Financial Corp., an investment company in Vancouver advised by one of the city's best-known penny stock investors, Frank Giustra. He was Endeavour's chairman until 2007. At Endeavour, Mr. Capponi and Mr. Baynham received a valuable education in structuring and promoting junior stocks. Mr. Capponi, CB Gold's chief executive officer, worked in the mergers and acquisitions department at Endeavour from February, 2006, until June, 2008. Mr. Baynham, an engineer and CB Gold's president, was director of debt finance at Endeavour from May, 2003, until June, 2008.
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Seems like a perfectly normal structure. The investmenent bankers are perfectly aware of the cost-base of the founders shares when they proceeded on the 5c and later rounds of offering.
Seems to me like a certain reporter for a certian online news agency has a LOT of envy.
hey those who can do, those who cant bitch and watch the doers do...and write about.
Great sleuthing BLAKE FRIESEN.
How scanadalous that these two make millions fro noth just themselves but all those other shareholders.
You wouldnt have written this piece had they lost their several hundred thousand dollars investement and years of their time - not to mention all of their credibilty - had the drills not been so lucky.
Congratulations to both of them! Capital markets are working well
Posted by L.N at 2011-11-02 13:46
One last comment here...did you write this piece from your tent at the art gallery Blake? Sure smacks of that type of sentiment.
Posted by L.N at 2011-11-02 13:48
i am long... that is a nice hole, i see another Ventana on the way
Posted by stockman at 2011-11-02 15:40
Wow, the promoters are all piping up on this. Seems to me, that THEY are ones that are envious!
Great article, shocking to learn of soooo much cheap paper. More shocking that CBJ is a $300m mkt cap Van play based on 1 drill hole.
Posted by Du-rag at 2011-11-02 15:45
L.N. - your posts cracked me up. LOL. I completely agree with your comments. Hey, these guys wrote the early cheques -- high risk, high reward. This could may well be a $10 stock in due course. Hopefully every shareholder that bought in a PP or in the market will end up making good $$ on CBJ.
Posted by observer at 2011-11-02 19:53
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