On Wednesday, the formerly known as Constitution Mining Corp. (Old Symbol: (OTC:CMIN) Goldsands Development announced that it has initiated alluvial gold extraction tests on the company’s Mika 2 concession in Peru. According to the press release, that test production should provide data for the assessment of the feasibility of the future development of the property. The announcement actually did not say much as testing does not mean commercial production, but GSDC had also received some promotional support the night before and thus it surged high and broke the 40 cents resistance.
The higher price could not survive, however, since a company name and a ticker change is rarely enough to make a stock look more attractive to the investment community. As Constitution Mining the company did not report any revenues, only losses and large debts. Thus, yesterday GSDC fell back down at market open. Total value lost was 28.95% and the stock closed the market a $0.27 on a trading volume of 2.5 million shares.
In January, the company extinguished the largest part of its debt through issuing over 75 million new common shares and then raised $1.6 million through a private placement. Though, Goldsands Development latest SEC filings of the company are far from positive.
Last week GSDC filed first its inability to file its 10-K for 2010 on time, then an 8-k saying that the company might become subject to SEC investigations for breaking securities laws for the registration of securities, financial reporting and/or market manipulation. It looks like either investors are certain that Goldsands Development has never violated any laws, or the company’s mineral properties (worth over $16 million on paper and according to their costs) are too lucrative to sell the shares only on suspicions.
