Shares of California Gold Corp. (OTC:CLGL) doubled their value yesterday when CLGL stock got promoted for the first time ever.
Closing at $0.01 per share, CLGL surged 100% shifting a six-month high volume of 2.96 million, its second largest volume for the last 36 months. By contrast, CLGL closed Friday’s session edging up 43% on a volume of 161 thousand.
While CLGL’s appreciation last Friday could be due to the announcement of an exploration drilling program scheduled to commence next month, as well as the private placement of 4.25 million units (which grossed $170,000), what CLGL did yesterday must have something to do with a fifty-thousand-dollar paid promotion launched approximately two hours prior to the start of the session.
Established in 2004, California Gold Corp. is an exploration stage company focused on acquiring and exploring mineral properties. The company’s primary asset consists of two mining concessions totalling 76 km2 as a part of the AuroTellurio Project in Mexico.
CLGL closed the quarter ended Oct. 31, 2011 with:
- cash reserves in excess of $1 million;
- working capital deficit of $1.13 million;
- net loss of $132 thousand.
Even though CLGL seems to have more than $1 million in cash, its short-term debt is twice as big, which suggests that the company might be having trouble paying it off in the months to come unless it raises sufficient external capital to keep the ball rolling.
