The records showed no particular reason for the loss, apart from the lack of fresh news on Gunpowder Corporation. Actually, the latest announcement by the company came up last week, when GUNP reported that it has recently closed a private placement of $200.000 and issued an update on its exploration program at Dome Rock Property in Arizona. The initial results of the program were expected by April 15, however due to a backlog at the laboratory they are not released yet.
After this news was published, GUNP stock price rose up, though it was back down on the next day. Since then no further information on Gunpowder was reported and now the stock is moving down again.
Gunpowder Gold Corp is a gold exploration company in pursuit of high impact gold projects in the Walker Lane Trend, as it extends into Arizona. In end-March, the company was on high trade, however, after that the stock price moved down.[BANNER]
At the same time the quarterly report of Gunpowder doesn’t inspire traders much. As of February 28, this year the company’s assets were lower than its liabilities and the stockholders’ deficit already totaled over $258 thousand. Besides, the net loss got 32 times higher as compared to the same period in 2009.
Due to the significant losses and the fact that Gunpowder has not yet established an ongoing source of revenues, the company is unable to cover its operating costs which would allow it to continue as a going concern. Thus, GUNP will need, among other things, additional capital resources. However, the management cannot provide assurances neither for obtaining any funds, nor for becoming profitable. While at the same time the team states that if it is unable to ensure these, Gunpowder could be forced to cease operations.