These days, the focused on growth Electra Gold Ltd. (CVE:ELT), (PINK:ELCGF) finally succeeded to grant investors the joy of its stock growth.
The story of company and stock growth started officially last Thursday, when Electra Gold Ltd. released elevated gold values for the Apex Zone on the DOT-Apex claim group.
This spring, the company announced the option to acquire a 100% interest in the gold Apex-Dot Property, located in the area of northwest Boston Bar, British Columbia.
It was acquired from the arm’s length party D.G. Cardinal for cash payments of $16K, issued in installments 500,000 shares and $300K in expenditures that have to be made on the property over a five-year period of time.
Maybe due to the common practice of the company to make deals with close related parities, one day before the above mentioned press release about the elevated gold values investors, being no close related parties, run to bank gains on the company’s stock. Apparently, they had the confidence in the company’s future and ignored the risks related to its business partners.
Last Wednesday, the big ELT running up started with the modest 16.67% share price soar on a modest trading volume.
On Friday, ELT stock made a huge price gap on a heavy volume, gaining 75% between sessions. On the same day, the company announced its next growth step with the acquired 4,500 hectares of ground close to Eagle Plains Resources Ltd. Yesterday, the last update of Electra Gold Ltd. came out and it was related to the next acquisition of additional hectares of ground in 11 claims near the Iron Range Gold Property.
Investors’ reaction did not come with a delay this time. ELT stock rose proportionally to the additionally released claims option with almost 29%.[BANNER]
The final calculations of ELT stock growth shows that on the released by the company elevated gold and properties’ values investors were able to bank a 157% gain in four trading sessions.
On the other side of this brilliant investment opportunity stays all the time the reported by the company in its last financials information that ELT operations are exposed to the financial and operating risks of the company’s business partners.
Since ELT is in the process of mining the Apple Bay mineral properties in British Columbia, 61% of the company’s entire mineral production in 2009 was sold to one customer. Further more, ELT reports that 32% of the cost of sales were performed by a private company owned by a shareholder of the company. And another private company owned by a shareholder of the company performed 16% of the cost of sales.
