There's Something Not Quite Right About Mexus Gold US (OTCMKTS:MXSG)

Mexus Gold US (OTCMKTS:MXSG) is a junior gold miner in something of a unique position. It's an over the counter stock, and has carried out a raft of pretty toxic funding raises over the last couple of years, but at the same time, it has a clear forward path that should see it able to grow its revenues going forward, without too much in the way of dilutive financing required. How?Well, the company is selling assets to fund its initial expansion, and has put together a partnership with a third party that sees the latter bear all costs of operations beyond that. Specifically, Mexus is selling a non-essential placer plant, the proceeds of which will go towards building out a brand new heap leach plant at its Santa Elena mine.There's something a little off, however.The partnership is with a Mexican company called MarMar holdings, which is reportedly owned by a Marco Martinez of Monterrey, Mexico. According to the press release that outlined the deal (and outlined is being generous here, as there is no information on what the two companies stand to receive form the partnership) MarMar:

"…has an extensive staff including lawyers, certified geologists, engineers, equipment operators and general labor to work the Santa Elena mine."

And

"… owns equipment capable of moving up to 100,000 tons of ore a day."

That's a lot of ore. Try and find anything about MarMar or Martinez online, however, and there's very little to verify any of these claims. The only real results pertaining to the company are the announcement of this partnership – it seems to be the only time MarMar has served up an online presence.There is a chance that a Mexican mining company might be relatively quiet online, but it's a little odd that there's almost nothing available on either the company or its owner beyond a just announced partnership.Why is this important? Because Mexus' valuation is dependent on its Santa Elena property, and the success or failure of the property is now almost entirely in MarMar's hands.Mexus CEO:

"The scale and scope that MarMar brings to this project will allow the mine to be built out much larger and much faster than we had planned. This is a great fit for Mexus and a win for our shareholders."

This all sounds great, but if there's nothing to back up these claims, then it's difficult to factor them into any valuation. And beyond these claims, there's very little to get excited about. Latest financials reveal just $12K cash on hand and around $1 million debt/accounts payable.The takeaway here is that without MarMar, Mexus isn’t going to be able to finance its operations, but we've got nothing but the company's word as far as verifying MarMar's ability to mine gold is concerned. Toxic finances have gotten the company to where it stands right now, and there are is plenty of potential for dilution as we move forward.This said, if the company can indeed execute on its intended development of the mine in question, the grade of mineral there is high, and there are plenty of already successful mines in the area.We'll keep an eye on how things play out, and in particular, continue to dig for anything that relates to, or verifies, MarMar's ability to execute on its agreement and meet the mines development and operational costs.Stick with us for MXSG updates by subscribing to our newsletter using the box below.Disclosure: We have no position in MXSG and have not been compensated for this article.