jumped over 47 million shares for the day. That’s a phenomenal gain for the pink sheets company, as its market position has been very uncertain.Just a week ago, the company was fighting to retain its position by spreading rumors about some Geotextile tubes testing in the Black Rock Canyon Mine. These days, the provocative announcements continue.
The latest one dates back from Oct. 1, when Pacific Gold reported that it has ordered the Geotextile tubes for dewatering tailings from the mine screening plant and they should be on site before Oct. 15. The company even planed to select a contractor for hauling and extraction of gravels after the plan starts functioning.
Apparently, the positive news provoked traders and PCFG started to climb. In case the optimistic announcements continue, it could be a new bullish trend for the stock.[BANNER]
Pacific Gold operates through four subsidiaries, focused on gold and base metals operations located in North America. At the beginning of this year, the company used to trade low, when in September the stock started its up move.
As the company hasn’t filed recent reports with the SEC, no one knows its current financial condition. The only information available is an 8-K form, reporting a material agreement between Pacific Gold Corp. and Crescent International Ltd. According to the agreement, “Crescent will convert the entire remaining balance ($220,000) of its October 5, 2010 debenture into common shares of Pacific at a conversion price of $0.00495 per share, with 50% of the debenture being converted before September 30, 2010 and the balance converted on or before March 5th, 2011”.
Management of Pacific believes the amendment will support its efforts to raise financing for the operations, however, there is no assurance that the company will raise any working capital. Obviously, in the meantime PCFG may rely only on speculative press announcements to hold its deceptive market position.
