History
Siga Resources chased several deal-based gold projects, then became Gold Lakes Corp. in 2015 and bought Flex Mining's Ontario claims, funded by heavily dilutive convertible notes.
2011: A burst of gold deals
The company, then called Siga Resources, Inc., spent 2011 signing deals. On May 12 it agreed a 50/50 joint venture with Big Rock Resources Ltd. on the Lucky Thirteen gold placer project (gold recovered from loose sediment). Big Rock was to pay $400,000 for initial work and $8,500,000 to reach production. The company also issued 2,000,000 restricted shares to Crown Equity Holdings Inc. for investor relations, but cancelled that contract in July and returned the shares to treasury.
In June it signed a letter of intent to buy the Big Bear Mining Claims in San Bernardino County for 11,000,000 shares, later reworked so most shares depended on proving gold ounces. In July it agreed a 50/50 joint venture on Big Bear with Bentall Fairview Resources Co. Ltd. In September, though, it dropped Big Bear because follow-up work found no target meeting its goals. The same month it agreed to buy the Montauban Gold Tailings Claims near Quebec City for 10,000,000 shares at a deemed $2.00 each. Later filings do not say how Montauban, Lucky Thirteen or the Bentall venture ended.
2012-2014: A quiet record
The record is quiet for these years. Shares on issue were about 45 million throughout. In November 2014 the company signed a letter of intent to buy a separate company called Gold Lakes Corp. for 25 million new shares, with a rename, a 200-for-1 reverse split and $1 million of financing over three years planned.
2015-2016: Gold Lakes and Big Monty
That Gold Lakes deal expired in April 2015, but the company kept the name. On April 9 it signed a letter of intent to buy Flex Mining Ltd., which held six Big Monty claims in Ontario's Abitibi Greenstone Belt. The name change and 200-for-1 reverse split took effect on August 24, 2015, and the ticker became GLLK. Shares on issue fell from 45,105,000 to 32,525,525 by the end of 2015. On August 28 the company signed an earn-in agreement with Flex, issuing 23,500,000 restricted shares at a deemed $0.05 each. In March 2016 this became an outright purchase of Flex's assets, though Flex can repurchase them at an agreed price if the company misses spending requirements over three years.
To pay its way, the company closed a financing with Himmil Investments Ltd. on March 15, 2016: $535,000 of convertible notes with warrants, with an original issue discount of about 46.7% on the initial note, and a possible further $300,000. The notes convert at a discount to market, which can dilute shareholders. Shares reached 103,096,935 by the end of 2016. In April it staked 31 claims called The Ponderosa, covering 13,008 acres. In August it contracted Canadian Exploration Services Limited for an exploration program at Big Monty, estimated at CAD $514,650 and ending in ten drill holes totalling 3,000 metres.
2017: Going-concern doubts
The auditor's report for the year to July 31, 2016 carried a going-concern qualification, meaning doubt that the company could keep operating. An exploration permit for nine Big Monty claims arrived on October 13, 2016, and a line-cutting deposit was paid on February 22, 2017. Shares on issue reached 6,458,884,274 by the end of 2017, a rise the beats do not explain. ZBS Group LLC was dismissed as auditor on July 31, 2017, and BF Borgers CPA PC was engaged on September 8.
As of November 13, 2017, the company held the Big Monty assets and The Ponderosa. It was still unclear whether the second Himmil closing had been funded, or how the CAD $514,650 program and the drilling would be paid for.
Written from the 13 story beats below (2011 to 17 Aug 2016), which come from the company's own announcements and filings.