These days, Brookemont Capital Inc. (CVE:BKT), (PINK:BKTPF) stock was rushed again, not only on the euphoria of the news related to the strategic acquisition of a property in Tanzania.
On the company’s release about the submission for final approval of the property by the TSX Venture Exchange, BKT stock price flew 19.44% up in a day.
It looks somehow strange that on no news the shares of Brookemont Capital Inc. were highly demanded and highly appreciated the whole week, even before yesterday’s news.
The released by Brookemont Capital Inc. Tanzanian news looked like the sweet red cherry on the cake of the unequivocal upward trend of the company’s share price. In five trading sessions, the shares added 87% in value.
The last available official information about BKT that could cause a stock stir is three weeks old. Then, the company announced its financial reports as at July 31, 2010 and 2009.
Although in these financials BKT presented total liabilities of $367K, the company still reported cash and cash equivalents of $275K and accumulated deficit of $2.1 million.
From the hot for BKT stock summer up to now Brookemont Capital Inc. has no announcements related to funds raising, but many related to properties acquisitions. The surging of the share price correlated to the news related to the company’s prospective new properties.
For investors of BKT the Tansanian fever started at the beginning of September, when the company entered into an agreement with an arm’s length party to acquire an 80% interest in a gold property located in the Handeni Region of Tanzania.[BANNER]
What happened to the share price was quite natural, but still remains the question how long it can last, considering the company’s financial potential to meet the obligations related to its properties’ acquisitions. Only for the above mentioned strategic Tanzanian property, Brookemont Capital Inc. has to make cash payments, exploration costs and issuances of new shares.
As known, this is not the only mineral property of Brookemont Capital Inc. that has acquisition cost and requires further cash payments for covering the maintenance, exploration and development.
