After burning through millions in shareholder funds, the Hill End Gold criminals were seemingly approaching the end of the line, with ASX querying the company's ability to continue operating. As part of its response, Hill End Gold cited a "liquid" holding in related party Bassari Resources Limited (BSR.AX). In March, Hill End Gold had announced it was increasing its stake in related party Bassari by converting a loan at $0.008, bringing its total holding in the company to 14.7%. Starting in June, Bassari was then ramped to $0.021.
According to ASIC, this was not a ramp because market manipulation does not exist, and therefore ASIC will do exactly nothing about it. As always. Bassari of course follows the standard pattern of manipulated shares, namely catastrophic long-term shareholder value destruction interspersed with short-term ramps designed to benefit insiders.
In June, the bellends at Hill End then announced they were selling their gold projects to LionGold Corp Ltd (A78.SI), part of the Blumont investment cartel, naturally with the consideration mainly in the form of LionGold scrip. The Blumont cartel uses crossholdings, revaluations and share ramping beyond NTA to create tremendous synthetic leverage, as first described by this blog post. Assume Company A and Company B each has $50 of real assets and a 50% shareholding in each other. Moving price-to-book from 0.75 to 1.5 quintuples the share price of both companies.
This is yet one more example of the Singapore-based criminal investment cartel making inroads on the Australian "market", while regulators in both countries twiddle themselves. The disastrous losses already suffered by victims of the Blumont cartel lie squarely at the feet of the complicit regulators, as do any further losses created by allowing these criminals to continue operating.