Despite the recently provided additional funds and the first gold and silver sales in previous quarter, Goldrich Mining remains in a dire financial condition. But yesterday GRMC stock received unexpectedly unusual interest by traders and saw the record trading volume of over 5.3 million shares. The total increase in the share price was 3.45% from the previous close and the stock closed at $0.3 for a share.
There are no disclosed promotions for GRMC, neither has the company issued any news since the filing of the third quarter financial report about two weeks ago. The report shows that the company has made major developments this year, including the production of gold and silver for gross proceeds of $1.8 million from the Little Squaw Creek gold mine in Chandalar, Alaska, although the cash raised this year through stock sales and note payable was still insufficient to reach the full scale of the planned exploration and mining.
Moreover, part of the needed funds for the equipment were received over notes payable in gold produced from the mine, and due to the much smaller than expected scale of the operations the company did not produce enough gold to satisfy its obligations and is currently in default on these notes. The rest of the funds were secured through the sale of 4.1 million units consisting of one share of common stock and one-half common stock purchase warrant.
One of GRMC institutional investors that is a 10% owner of the company also does not seem so sure in the future expected return of GRMC and kept selling out certain amounts of shares in October and in November. Along with the uncertain scale of the future gold production, the stock bears severe dilution risks as the company will have to organize the next capital raising event as soon as possible to fund the production over the next year.
