Canadian Mining Company Inc. (CVE:CNG) (PINK:CNGCF) stock had a substantial increase in trading activity after the company received a drilling permit.
The trading volume topped 2 million on Monday which brought substantial attention to the stock. Such a turnover was the heaviest record over the past year. The share price also appears to have found another support at 3 cents per share and the 50 day moving average even turned up at the end of November which suggests the downtrend could be at its limit.
This might turn out very fortunate for bulls as they now have both a favorable technical layout and positive news affecting the price performance.
On December 12 CNG announced to have received a drill permit from the mines inspector of the Ministry of Energy and Mines. The company was allowed to proceed with drilling at their Sun Group Zeolite project in British Columbia. They can now proceed with the NI 43-101 reserve report.
Investors should expect to see a capital stock offering comparatively soon as this new project goes onto the list of actively explored properties. The company holds only 60 thousand in working capital and has historically relied on mostly on equity sales as means of funding.
In addition to the zeolite project Canadian Mining also holds interest in four precious metals projects in Canada, Mexico and the US.
