Yesterday, Cangold Ltd (CVE:CLD), (PINK:CGLJF) stock re-discovered gold.
CLD stock experienced a share price explosion on two markets on the announced by the company financials, which are not so positive but demonstrate potential.
On the TSX Venture Exchange, CLD soared 71.43% between the sessions, closing at $0.06 per share. The golden for the stock new 52-week high proved investor willingness to further push up the price of the shares.
The volume traded was the highest for the last four years. During the trading session yesterday, more than 5.2 million shares changed hands, changing also the trading range of CLD.
On the American OTC market, the shares of Cangold Ltd delivered a higher return than the one of gold. On the Grey market, CGLJF exploded 166.67% on a volume of more than a quarter million shares changing hands.
Less than two weeks ago, Cangold Ltd announced its financial reports for the three months ended September 30, 2010 and 2009.
The company reported losses, which some experts may consider minor in terms of dollar value and time frame since CLD is in the development stage. CLD reported also an accumulated deficit of approximately $11.7 million and a negative working capital balance.
Although investors could have returned back the share price on these facts, the stock price of the company surged sharply than the price of gold.
This summer, Cangold Ltd terminated its option for the Los Venados property, still keeping its other option for future profits: its Plomo Property in Sonora, Mexico.
In the above mentioned financials, the company announced positive development on the Plomo property. At the beginning of this month, CLD retained its option on the Plomo property, making the scheduled cash payment of $15K and issuing 100,000 shares to the owner of the Plomo property.[BANNER]
Three years ago, the company signed an option agreement to acquire a 100% interest in the Plomo Property in Sonora, Mexico. Cangold Ltd may acquire a 100% interest in the Plomo property by making staged cash payments totaling $100,000 and issuing 700,000 shares over five years.
Looks like, excluding the shorters’ interest yesterday, investors had a solid base to support the upward movement of the company’s shares. That shorters’ interest just made yesterday’s stock rush much more spectacular and increased the gold potential of CLD stock.
