FNC finished the day 13% higher than the previous close. During the session, a peak at $0.155 was reached, which represents 92% of the stock’s 52-week high. The turnover of, please stay clam here, over 20 times (!) the company’s average put FNC among the most actively traded items on the CVE.
The absence of recent official news released by Fancamp makes it all but easy to indicate what might have caused such uproar.
The latest information from the company came at the end of December, when Fancamp announced the completion of two consecutive tranches of its previously announced $4M brokered private placement. As stated, the company intends to use the raised funds for exploration on its mineral properties in Quebec, as well as for working capital purposes.
The financial state of Fancamp Exploration Ltd. shows there is certain potential for a further rise in the share price. The quarter reports reveal several positive trends for the period ended Oct. 31 in comparison with the corresponding quarter in 2009:
- Revenues have jumped by 250%
- There is a net income of $2 667 compared to a net loss of $21 616 for the three month period of 2009
- The company had a cash of almost 2.93M as at Oct. 31, 2010, which is four times the figure in 2009.
But these encouraging results do not guarantee that FNC is for sure going to rise in the future. Fancamp has a total of sixteen (!) joint ventured properties, in all of which it holds a 17.5% working interest, as well as several other 100% owned projects. These properties require substantial financing and the company will no doubt need more capital to run them in a proper way. The funds raised from the above-mentioned placement will probably not be enough.
