Gediminas Jasionis

Dolat Ventures, Inc. (OTCBB: DOLV) Dreaming About African Diamonds

by Gediminas Jasionis November 24, 2009
Dove_logo.jpgNews issuance on Monday drove Dolat Ventures, Inc. (OTCBB: DOLV or DOLV.OB) stock up over 300% after the company publically confirmed their intentions to acquire Dove Diamonds and Mining, Inc. The company currently engages in cutting and distribution of diamonds and other precious metals.

The material agreement was originally signed back on November 9, but was only recently disclosed. According to the filed documents, Dolat intends to buy all of the outstanding stock of Dove, however the financial details are still missing. This doesn't look like a pump and dump scenario, but some key elements are just not published.

Further, the company already owns Dove Diamonds to some extent, but apparently wants full ownership. The problem is, with only $3000 in cash they reported to have at the end of August, this goal seems hardly achievable. Additional capital will be required, unless Dove only sells its name with no assets attached.

As for their business plans, the company counts on Siera Leone's government initiatives in becoming Africa's leading economy and even more on the Soros Economic Development Fund's involvement in the country's development. Apparently they expect some dotations or easy to get loans and count mostly on upcoming opportunities.

The company's current situation if however far from good. They have ambitious goals of mining diamonds in Sierra Leone but apart from debts (stockholders' deficit is $30 thousand) the company actually has nothing. Until we see substantial changes in capital or properties owned, this is to be viewed as just another company competing for resources.

 

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