Habanero Resources Inc. (CVE:HAO) (PINK:HBNRF) returned to the casual low liquidity trading after it was shortly shaken by news on the would be start of a drilling program.
HAO stock attracted a heavy trading volume of over 4 million on Friday, yet the price didn’t react to this jump.
News published the same day said that the company contracted Equity Exploration Consultants Ltd. to oversee their 2011 drill program in the Yukon Territory. Habanero plans to spend $800 thousand on Haldane Silver Prospect and the work is planned to commence on June 15, 2011.
Habanero also said they expect to initiate a work program on White Gold prospect in the coming months. Both properties have neighbors with significant discoveries or producing mines, building up expectations for HAO work.
Share price remain unaffected as the company has nothing substantial to show at the moment. Fundamentally the business is troubled:
Although they managed to retain little debt by refraining from selling debt, investors will likely see even higher dilution rate this year due to equity funding. The company doesn’t have the necessary $800 thousand so stock selling should be expected to increase additional 33.7%.
