Yesterday, SRGZ stock had another trading session with an increase in the price and boosted up volume. The stock price jumped 14.93% up and closed at $0.77, the highest value reached during the day, but the trading volume jump was much more impressive. Almost 343,000 shares were traded, compared to the minor around 13,000 on Monday.
The only surprise is that the volume reaction came just yesterday, and not straight on the announcement from Monday morning about the second portion of secured funds. The strange action could be due to some suspected promotions for the shares. Anyway, the optimistic opinion that now when Star Gold has the cash its business will finally take off from the bottom obviously prevailed.
The two funds raising events took place last Thursday. The company received $130,000 from the conversion of some previously granted warrants and issued in exchange shares of common stock at a price of $0.20 each. At the same time, Star Gold completed an offering of 240,000 units for total proceeds of $120,000. Each unit consisted of one restricted common share and warrants to purchase one more such share at a price of $0.75 by November 15, 2011 and at a price of $1.00 thereafter.
Thus, the total cash amount looks actually huge when compared to Star Gold total assets of $93,000 at the end of July, 2010. Even more encouraging sounded the company’s plans to use the proceeds to acquire additional claims on its Nevada properties. Just like the company itself stated in its latest press release, traders will also look forward to receive news about more developments as they unfold.