News about the exercise of an option pushed the stock of North Bay Resources Inc (PINK:NBRI) up 13% to a 52-week high of $0.16 per share. The price surge happened on a volume of 893 thousand shares, which is both considerably higher than the daily average trading volume and nowhere near the twelve-month highs.
Prior to yesterday’s session, NBRI came up with an official press release. According to the news, the company had now exercised an option for the purchase of a Ruby Mine. Thus, the transaction has finally been brought to a successful end. Obviously, NBRI has somehow found a way to provide the last tranche of $85K to cover the final option payment.
Since the above mentioned Ruby Gold Project is known to have produced more than 250 thousand ounces of gold since mid-19 century, its acquisition is considered a big step into the right direction for NBRI. Stretching on over 1700 acres, the property consists of two patented claims and 30 unpatented ones.
NBRI is a regular SEC filer, hence its impeccable reputation regarding its transparent policy. Moreover, the company is not likely to lose its place on the OTCQB market tier, at least for the next couple of months, because it recently filed a full-on 10-Q report covering Q1 of 2011. As of Mar. 31, 2011 NBRI has:
- $90K in cash;
- negative working capital exceeding the $840 thousand mark;
- zero revenues and a quarterly net loss in excess of $140 thousand.
To go in the black, NBRI will most probably rely on its newly-acquired Ruby Mine. Yet, only Heaven knows when the company will start generating profits from the property. The sooner, the better.
