Plains Creek Phosphate Corporation (CVE:PCP) stock price corrected up after the company made final arrangements to depart from a non-core project.
PCP has been downtrending since the stock got listed on Canadian Venture Exchange under the new name. Share price saw a 31.25% correction on Wednesday though it didn’t stand out from the general volatility. The trading volume was 6.5 million far above the average of 489 thousand.
Plains Creek recently announced the management agreed on favorable terms to terminate their rights to the Dora Gold project in British Columbia. The company said this will allow them to focus on Farim Phosphate Project in Guinea Bissau as their main one.
The Dora project was a leftover from the time when Plains Creek operated as Resources Hunter Capital Corp. The company had arranged the termination of option agreement with Appleton Exploration Inc. on May 19, 2011 in preparation to depart from this project, but it was subject to terms negotiations and regulatory approval.
Termination of options agreement will require Plains Creek to pay $50 thousand to Appleton and issue 250 thousand common share and warrant units priced at 10 cents per piece. The warrant could be exercised in 2 years after they are issued.
