TC Power Management Corp (OTC:TCPM) stock explodes for the first time in its few month of trading history.
The disclosed by the company financial reports made a miracle with the share price.
TCPM confirmed its new engagement in the search for mineral deposits and only options to control two mineral properties in the area of the second largest city in Mexico.
Yesterday, the shares of TC Power Management Corp. recorded a new 52 week high, getting the best of it. In a volume exceeding eighty-five times the daily average turnover, TCPM soared 15.01% to close at $0.9201.
The not so popular up to yesterday and rarely traded TCPM showed potential, fuelled up in a short time. One of the reasons for this was the recently disclosed quarterly financial report of the company as of February 28, 2011.
The report presented on a consolidated basis the results of the company’s activities after the completion of the acquisition of Axiom Minerals de Mexico S.A.
In January, TC Power Management Corp. acquired all of the issued and outstanding shares of Axiom Mexico through the issuance of 2 million shares of its common stock. As a result of the merger transactions Axiom Mexico, as a surviving corporation in the merger and a wholly-owned subsidiary of TC Power, continued its existence under its current name. It also continued to be under the jurisdiction of the state of Chihuahua, Mexico.
One of benefits for TCPM from the aforementioned deal was the changed business focus. Previously, TCPM was a consultancy services enterprise, while now it jumpes to an industry which, according to experts, will still continue to grow in the forthcoming years.
The other benefit for TCPM is related to not yet explored by the company opportunities, which were highly appreciated by investors yesterday, as the share price chart shows. Though, this can not be guaranteed for the future, since a lot of activities and much more capital are required than recently reported.
At present, with the acquisition of Axiom Minerals the company has only control on the controlled by its subsidiary Axiom Mexico two mineral properties. They are located in Sonora, Mexico.
The first property is related to the company’s Aurora project. TCPM has two option agreements for the Aurora project. The so called Aurora option agreement covers 120 hectares and the second called Guadalupe Group option agreement comprises of 450 hectares. As reported, the company can earn a 100% interest in the Aurora concession by paying $600K in staged payments in four years. Even if some investors consider that the aforesaid amount is well negotiated, some other facts still remain. The companies have not determined if adequate water is available in the area. There is also no telephone service in the area. Communication is provided with a satellite phone, or two way radio.[BANNER]
The second controlled by the company property is related to the Gavilan project. It is comprised of two concessions and covers a total area of 724.1028 hectares. Axiom can acquire a 100% interest in the Gavilan concessions by making staged payments of $250K over a four-year period. TCPM defines the Gavilan project as an early-stage project since the property has never been tested and explored.
Referring to all above, it seems that yesterday the shares of TCPM were rushed by the enthusiasm of the gold rush. It is up to investors to decide how long they will support the shot almost to the $1 share price, but one is clear: the hard battles of the company just start and the battles for the fair value of TCPM are still ahead.
As the company states in its reports: “Prior to production of precious minerals we must mine, smelt and develop mineral resources, if any, located on properties that we have the right to develop”.
