Liberty Gold Corp. (OTC:LBGO) seemed all but dead until June 18. Then a pump campaign started and there are still some efforts going that way, although the results are less than impressive.
Last Friday LBGO closed down 6.32% at $0.89 with a little over 50 thousand shares changing hands.
As it often happens with paid pumps, the only day there was a considerable market reaction was the first day of the campaign. On June 18 the volume exceeded 1 million shares, but LBGO still closed down.[BANNER]
Despite the dreadful effect of these promotions, yesterday the latest batch of emails came in. The promoting newsletter is different this time, but the paying party is the same. Winning Media paid another $10,200 for the pump.
Taking a look at LBGO there are some factors which can explain the price drop. Last Tuesday, the company issued a press release about a $15 million financing agreement. It could be viewed as important news, if it weren’t for the fact that the agreement is from eight months ago, and there is no 8-K filed to provide details.
The other recent announcement is that the company has acquired a 60% interest in a gold project in Alaska. The interest won’t be vested until LBGO has made some payments and incurred $600 thousand in expenditures, and that must happen by 2015.
At this point LBGO isn’t generating revenue and will have to continue to use the financing agreement which comes at the price of diluting the stock of the common shareholders. Even so, today LBGO has opened up with a gap up again. We will see where it will close.
