Earth Dragon Resources Inc (OTC:EARH) was quite popular earlier this year, but after the buzz faded away so did the price.
On May 10 the company published an announcement, which seemed to have a rather negative effect on the stock. Yesterday, however, EARH bounced 37.50% and closed at $0.495 on 2.9 million shares.
The announcement concerned a joint venture (JV) agreement between EARH and OverTrust Mining Corporation. The companies are supposed to jointly develop two iron ore properties in Canada.
In the same PR, the company advised it had cancelled the 3:1 stock dividend which was announced back on Mar. 8. This cancellation seems to have created some problems for certain shareholders who use E-Trade. At least that’s what ReggieB suggests in this post.[BANNER]
Back in January EARH entered into two JVs. One is for concessions in Ghana, and the company made its first contribution on Mar. 8 ($35 thousand). The other was for some mining concessions in Tanzania. In connection with it the company paid $125 thousand and decided to drop the JV on Mar. 30.
So far today, trade has been somewhat slow for EARH. Some shareholders dumped their positions prior to the current bounce. Only time will tell if this was a really bad call.
