hit the negative price change at the impressive volume of over 8 million shares traded. What’s next now?The records show that the Wednesday gain was due to the recent promotion of the stock and to the news about the Letter of Intent for acquiring a 100% interest in mining operations on 12 unpatented mining claims commonly known as the Artesian Project property. However, the high move didn’t last long. Despite the good news and the follow-up promotional series for IROG yesterday, the stock price moved down and kept the shocking volume.
There’s been some information that IROG was promoted by Hototc.com, which has been compensated by the third party TI Consulting $45 thousand dollars for a one-week IROG advertising services contract. Hototc.com doesn’t own any shares of IROG. Although the information remained unconfirmed, in case it’s true it looks like even the thick compensations for the promotions weren’t enough for holding the up move.[BANNER]
Ironwood Gold Corp is an exploration-stage company specializing in acquiring and consolidating mineral properties through exploration discoveries. Last May, the company used to trade about six times higher, though since then the stock price moved down significantly. Currently, IROG is fighting to rise up again, but the share price is quite uncertain.
According to its 10-Q report, Ironwood has generated no revenues, has an operating loss and its stockholders’ equity has decreased. By end-May, the company had working capital deficiency of over $377 thousand, including $525 thousand payable for mineral properties. The management believes IROG has sufficient cash for the next six months (which are as of today already over), however, it expects to continue using debt and equity financing to fund its operations. Presently, Ironwood relies on the new Letter of Intent, though judging by the company’s financials the search for additional financing looks inevitable.
