Goldrush Resources Ltd. (CVE:GOD) (PINK:GDRRF) showed some disturbance in trading activity on Monday, but the stock didn’t follow up with price action.
Shares tanked more than 12% on a correction today. Nothing was left of the spectacular trading volume which topped 1 million a day ago and was 5 times the average of 212 thousand.
Price movement remains volatile but doesn’t really stand out from the recent action. GOD price is jumping back and forth around the main price averages of 50 and 200 days, in the vaguely defined channel between 15 and 20 cents.
By the end of Monday the company announced they have hired a new chief geologist. Goldrush said that, effective June 1, John Learn will oversee their exploration programs in Burkina Faso. The announcement added to the unusual disturbance among stock traders.
Post market hours the company also stated that they have increased the private placement offering (units of shares and warrants at $0.16 per unit) to $3.4 million. The amount was adjusted from $2 million announced on April 21.
Apparently the fund raising wasn’t welcomed by traders considered the drop in price that followed today. On the other hand, GOD was virtually out of cash, so this private placement should get thing moving on their projects, especially on Ronguen gold deposit, and could also be used to acquire new properties.
The units offering has a potential dilutive strength of nearly 28%.
