Hana Mining Ltd (CVE:HMG) (PINK:HNMFF) added 5.5% to its share price on Thursday after a very volatile trading day.
The daily trading volume of 4 million clearly showed how tense the situation has become and the number of shares traded continues to increase every session. HMG average turnover is only 578 thousand, thus the current situation is clearly extraordinary.
The most recent price surge was a direct response to the company’s recent plans for financing. On January 26, Hana announced they will be offering over 10.37 million common shares for a possible proceeds of up to $14 million. Shares will be offered through a non-brokered private placement at $1.35 per share. Under the current pricing, this offers around 14 percent discount.
Hana rushed to raise capital after finding the best to date grades of copper-silver mineralization
The results from their last 13 infill diamond drill holes were announced a couple of days earlier on January 24. The company subsequently will be able to increase the projected amount of indicated resources at the Banana zone on their Botswana property.
The stock price gained a total of 14% over the course of the last three sessions, reacting to the news. The highly controversial reaction was seen in response to the plans for raising working capital but the bulls prevailed, thus giving a blessing in a way to go ahead with the dilutive plan.
