Yesterday, Amarok Resources Inc (OTC:AMOK) released the resumption of the drilling works on its AMK 10-04 hole in the Rodeo Creek Gold property. The announcement sounded more like a company’s response to suspend the drilling down of its share price than as a critical update.During the last two trading sessions, the price of AMOK entered the under-one-dollar trading range, almost confirming the shares’ downtrend.
Yesterday, AMOK closed the market at $0.981 per share, being only 28 pennies above its 52-week low. At the same time, last year AMOK was worth two and a half times the aforementioned closing price.
A lot of investors are asking what was the reason for such a share price decline. And a lot of them are responding that the reason is the fair value of AMOK.
During the first half of last year, the price of AMOK was almost constantly supported by monster stock promotions. After the calming of the myriad investor awareness campaigns, the time of the shares’ doldrums came.
All above downhill share price movement reflected also the poor financial standing of Amarok Resources Inc. these days. There were supposed to be grounds for the company’s ambitious gold projects.
Maybe, the only natural and not pushed up by promotions stock stir of AMOK was at the end of last year, when the company released the completion of a private placement for $1,000,000.
As often controversial, Amarok Resources Inc, even for this remarkable event had no time to make its 8k filing, not so much for the SEC’s but for the investor’s acknowledgment.
Why controversial you may ask? Not only because up to now the financing is still not filed to the SEC.
Last September, the company dismissed its independent registered public accounting firm. As stated by AMOK, this step was made not because “of the audit scope, or accounting principles,with the exception of a modification indicating there was substantial doubt that the Registrant would continue as a “Going Concern”.
Finally, last month with a delay of course, Amarok Resources Inc. announced its explosive annual financial report, this time not only with the assumption that the company will continue as a going concern. There, as of the end of last October, AMOK reported cash and cash equivalents of $2.01 million and exploratory costs of $1.8 million.[BANNER]
The company presented there in general information about the mentioned already private placement and interesting details about the Rodeo Creek Project in Nevada. In consideration for the assignment of interest in the exploration agreement about the project, the company paid $1 and issued 100,000 shares of its common stock, valued at $168,000.
The $1 deal and the strong cash positions were not able to convince investors to push up the price of AMOK after annual reports release.
Only the worth ninety thousand dollars stock promotion was able to do it. The campaign was done a week before the announcement of AMOK’s financials. It was funded by the cheer company’s shareholder Benchmark Media Ltd., which holds 1.5 million shares of Amarok Resources, Inc.
Who knows, these days the resumed drilling works release may be supported by a stock promotion and AMOK will bounce from the bottom again.
