Purcell's cynical tone at his best!!! (Gee, I still have a few shares from Pierre Gauthier's reign...!) GLTA. BaBe.

Diamonds Summary for July 7, 2011

2011-07-07 16:39 ET - Market Summary

by Will Purcell

(...)

Frank Smeenk's KWG Resources Inc. (KWG), which gained one cent to nine cents on 1.28 million shares, is trying again to launch its Ontario diamond projects as a spin-off company, Debut Diamonds Inc. (If he succeeds, Debut will trade on the Canadian National Stock Exchange.) Mr. Smeenk wants to raise $2.8-million in an initial public offering by selling eight million 35-cent shares. Following a series of internal transactions, KWG would hold about 38.5 million shares, which Mr. Smeenk intends to pass on to KWG shareholders. Debut holds several diamond properties in Northern Ontario, but its MacFadyen project near the Victor mine is the most advanced play. Mr. Smeenk, a Toronto lawyer turned stock promoter now in his 60s, is expected to be the alpha male at Debut and at least a few of his long-time fellow travellers are likely to join him there. That group would probably include Michael Harrington, a Denver-based accountant who is vice-chairman of KWG, who has been a frequent fellow traveller of Mr. Smeenk. Mr. Smeenk's extended family of associates includes several fellows who once worked with Pierre Gauthier, the Montreal-based stock promoter who got into trouble with the regulators in the late 1990s for some fancy accounting. Those woes nearly killed KWG and its diamond plays in the late 1990s, and Mr. Smeenk's work to get them back on track has yielded anemic results so far.

.