Breaking acquisition news pushed Red Metal Resources Ltd (OTC:RMES) up during the latest market session that took place yesterday. In alignment therewith, a brand-new paid advertising campaign has just surfaced.
As RMES announced it had undertaken to purchase the Chile-based Veta Negra Property, its stock surged more than 13%, eventually clocking in at $0.51 per share, thus reaching its highest value since late-October. The turnover also spiked with 6,700 shares changing hands, marking a five-fold improvement over the daily average trading volume.
Yesterday’s positive movement came hard on the heels of another 12% increase, which occurred on Tuesday when only 100 shares of RMES stock were actually traded. Despite the minuscule volume, there was a noticeable price change, so it all adds up. As a result, third parties launched a promotional program immediately after the end of yesterday’s session. The promoter revealed to have been compensated $24,300 for creating a full corporate profile of RMES and for raising awareness about it among penny stock investors.
Occupying the metal mining industry, Red Metal Resources Ltd. aims to maximise shareholder value by acquiring interests in Chilean properties considered to have rich deposits of copper-gold. The company claims to have established a management team with strong geological expertise.
As far as RMES’s financial transparency is concerned, it is as good as it can get. The company is a registered SEC filer and belongs to the OTCQB marketplace. Its latest 10-Q form covers the quarter ended Apr. 30, 2011 and reveals:
- cash reserves of $1.3 million;
- working capital surplus of $0.74 million;
- net loss in excess of $285 thousand.
Although Chile is renowned for its purported large deposits of copper-gold, RMES still appears to be far from generating any revenues whatsoever, let alone profits. Due to the specific nature of this industry sector, however, it often takes ages before companies manage to go in the black.
