Yesterday, Lone Star Gold, Inc. (OTC:LSTG) stock got another following promotion supported by news from the company. Yet, the stock closed the market with a decline as the promotions seems to lose their impact on traders. 
The closing price of LSTG of $1.04 per share yesterday was 7.14% lower than on Friday, while the volume reached almost 536,000 shares. Despite the decline, LSTG did not manage to fall through the support level, but there is no guarantee that this happens today.
Our newsletters database shows that Lone Star Gold has got a lot of promotions, whereby the compensation paid so far this month only reached $334,000. That sounds like an incredible amount for a company that relies solely on potential to justify its current market value of nearly $120 million – another incredible value given the company’s negative stockholders’ equity as of end-June this year.
In a press release early in the morning yesterday, Lone Star Gold provided some updates about the drilling under the exploration program for the La Candelaria gold and silver property in Chihuahua, Mexico in which the company holds a 70% working interest.
A few minutes before the press release, LSTG had also filed an 8-K according to which the company raised $200,000 in a private placement of 238,095 shares of common stock sold to an investor at $0.84 per shares, or at a substantial discount from the current market price.
It has been the first sale of shares under the announced at the end of August Investment Agreement and the proceeds would be used to fund the exploration and development of the La Candelaria property. It is likely that the amount raised will not be enough, however, since the exploration program would cost $450,000 according to the company. Under the Investment Agreement LSTG could raise up to $15 million through the sale of common stock.
