History
A Nevada shell with one unproven zinc claim turned toward Ukrainian gold in 2010, but its financing was never confirmed and the deal was unresolved by December 2010.
2007-2009: A shell with one claim
Supatcha Resources Inc. was a Nevada exploration company incorporated on 21 August 2007, led by CEO Donald Axent. Its only asset was a 100% option on the unproven "Bonanza" zinc claim in British Columbia, bought for $6,500. In September 2008 the US securities regulator's first review of its registration statement found a contradiction: the claim's stated expiry date (14 January 2008) did not match the purchase agreement's date (14 July 2008). Both dates had already passed, so staff asked how the company still held any interest in its only asset. The record then goes quiet until late 2009. By the end of that period the company had about 12,200,000 shares in 2008 and a small cumulative loss.
2009-2010: New board, a restatement and a Ukrainian plan
Effective 9 December 2009, Axent, secretary William Kosoris and CFO Brian Matson all resigned. New president Steve Talley joined directors Nikolae Yagodka, a mining geologist with 25 years' experience, and Andrei Yasinskij, a Russian investment executive. Their first quarterly report, filed 15 January 2010, showed a net loss of just $390. In February the company and its auditor, Webb & Company, found it could not be relied on: it had been filed without auditor review and left out accounts payable, officers' in-kind services and officer loans. The restated report, filed 16 February, put the quarter's loss at $12,475 and left stockholders with a $24,053 deficit.
The next day Supatcha signed a non-binding letter of intent to buy the Barlevskoye and Vynohradiv gold exploration licences in southwest Ukraine from Poltavas Capital Management Ltd. for $7.5 million plus 500,000 shares, targeting a 17 April 2010 close. The delayed annual report, filed 14 July 2010, showed the strain: assets of $7,511, liabilities of $37,657 (mostly $26,850 owed to related parties) and a cumulative deficit of $105,722. Shares outstanding had grown to 61,000,000. The company said it was committed to the Ukraine properties, but only if it secured financing it did not yet have.
2010: Spending, promotion and another leadership change
Spending rose fast. In the quarter ended 31 August 2010 the net loss reached $255,959, including $114,762 of exploration costs and $76,159 of consulting fees, taking the cumulative deficit to $387,389. On 16 November 2010 the company agreed to pay The Wallst Bulls Consultant Group 4,000,000 restricted shares, about 6.5% of the 61,000,000 outstanding, for market-awareness work.
On 9 December 2010 it released a geological report on the Ukrainian properties describing historical drill results of up to 12.2 g/t gold. The report was titled a preliminary "Resource Statement" built on largely unverified Soviet-era data, although the filing's cover text described it as a compliant reserves report. On 13 December, two months late, the company disclosed that Talley had resigned effective 15 October, replaced by Yagodka. The board was now Yagodka, Yasinskij and new director Dennis Lipton, an investment banker. As of 13 December 2010, financing for the Ukraine purchase had not been confirmed and the deal had not been shown to close.
Written from the 10 story beats below (2008 to 13 Dec 2010), which come from the company's own announcements and filings.