When we last covered Continental Res Group Inc (OTC:CRGC) a month ago, CRGC stock had just shot up by 30%. Pretty much the same scenario occurred yesterday.
Opening at $0.22 per share, CRGC was subject of heavy trade during the latest session. By the time the session came to a close, CRGC had gained 32% in value, closing at $0.29 and shifting more than 0.5 million common shares of CRGC stock, which in turn allowed for a six-fold improvement as compared to the previous trading day.
Four weeks ago, we pointed out the lack of regular news regarding CRGC’s current business operations. Now, the case is no longer the same. Moreover, the company has published as many as 5 official updates to both shareholders and the general public. The latest bit of news came up on Thursday to provide investors with a thorough report on the activities of CRGC’s acquirer Sagebrush Gold, Ltd. (OTCBB:SAGE) for the last three-month period. The company claims to have attracted “a significant capital infusion” that was big enough to ensure the successful completion of a number of phases of its gold exploration program.
CRGC’s main assets is the Relief Canyon Gold Mine Project – a Nevada-based past producing gold mine. According to the management, the canyon “possesses strong potential” for containing large deposits of leach ore.
As a diligent SEC filer, CRGC recently submitted a comprehensive 10-Q report for the second calendar quarter of 2011. As of Jun. 30, the company’s balance sheet contained:
- cash reserves in excess of $13.2 million;
- working capital surplus of $15.4 million;
- quarterly net loss to the amount of $2.6 million.
As set out in the acquisition agreement, Sagebrush Gold, Ltd. will have the right to use CRGC’s cash reserves and all other assets in its mining projects. Bundled with the $10 million attracted from outside investors, both companies seem to be able to proceed at full speed. Whether they will meet with success or not, however, is still not 100% certain.
