Todor Pichurov

Santo Mining Corp. (OTC:SANP) Keeps Sinking

by Todor Pichurov November 16, 2012

Apart from the unimpressive financial figures, SANP is up to more capers that may upset investors. The report details how the company acquired land claims from another entity named Gexplo SRL, paying 25 million of SANP shares in the process. A couple of paragraphs down, it becomes clear that Gexplo is a company owned by Mr. Alain French who happens to be CEO, president and sole board member of SANP. To sum it up, Mr. French paid himself nearly 20 million dollars worth of SANP shares to purchase land claims with no proven resource caches in them.

On Wednesday, SANP also announced a 2-for-1 forward split of the company stock. The company seeks to diversity its shareholder base by reducing per-share price but in the last sessions the price has gone down in leaps and bounds anyway, so the split may not have the desired effect in the end.

The bottom line would be that with pretty much all pumped penny stocks, there is something going on and something that will lead to regular investors getting the shaft while someone on the inside or otherwise in the know cashes in. Remember to do your own due diligence and be very careful with all OTC stocks, especially with promoted pennies that almost inevitably crash and burn once the pump stops.

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