Positive results from lab tests helped ICBS LTD (PINK:ICBT) start a new life on the penny stock market. Having gone dangerously close to the very rock bottom of $0.0006 per share, ICBT stock delivered a fantastic performance yesterday when it gained a staggering 300% and closed the session at a six-month high of $0.0024. The record surge also triggered a 26-week high for the turnover as almost 165 million shares changed hands, way above the average volume of 26.5 million.
Contrary to the popular belief, this quantum leap has nothing to do with any promotional campaigns whatsoever. The reason for all this hype about ICBT stock boils down to a couple of lab test results. As it appears, a 7200-acre property that is jointly owned by ICBT and the metal mining company Canwealth Minerals Corporation has recently been tested for mineral deposits. The surface samples taken from the Canadian property suggest, according to the lab tests, that the region might turn out to contain deposits of precious metals, as well as rare earth elements.
So far, so good. However, the company is still far from striking gold. No matter what the preliminary samples show, it is the core drilling that will reveal the real picture. Unfortunately, such activities are expected to commence this fall at the earliest, given that the initial geological reports get ready on time. The latter is entirely dependent upon stable financial flows.
According to the press release, ICBT has pledged to secure the financing for the deep exploration of the site. Yet, at the present moment, how it will actually finance the project is by no means clear. The company is a limited information provider on the OTC market, hence it does not file with the SEC. Nevertheless, ICBT submitted an interim report covering the 11-month period ended Jan. 31, 2011. It indicates that the company has so far generated zero revenue and zero expenses.
ICBT only assets seem to be its investments in privately held companies currently evaluated at approximately $4 million. If Canwealth Minerals, which is one of them, really ends up sitting on a gold mine, ICBT and its stockholders will enjoy an overnight success.