Sidon International Resources Corp. (CVE:SD) (PINK:SIDNF) selling presure seems to have eased after the stock tanked 40% in half the trading session yesterday, but the price hesitates to move back up.
The price tanked after Sidon released a report on drilling results, pointing out there is a structural break at the primary artisanal mine. The contractor, AFGF (Tanzania) Ltd., recommended adjustments to the drilling depth and orientation in attempt to determine the actual orientation of the veins.
Only two out of six holes confirmed somewhat significant gold mineralization with average values of 1.7 g/t and 0.4 g/t over 3 meters in both holes. The fifth hole intersected only miniscule 0.2 g/t gold mineralization over 1 meter.
Around the time of drilling results announcement, another news on fundraising came out. The director of the company, Souhail Abi-Farrage, replenished Sidon’s cash reserve with $125 thousand, by buying nearly 926 thousand units at 13.5 cents per piece. Warrants that were included hold a conversion price of 15 cents.
The act of units purchase failed to inspire investors and somewhat ease the selling pressure that came in reaction of the not so successful drilling results. The current share price of 7 cents represents a 48% discount to the price Mr. Abi-Farrage invested at.
No signs of increasing buying pressure have been recorded today, despite the heavier than normal trading volume. Technically, the price gained another strong resistance at 12.5-13 cents if SD were to turn around on heavy buying.
