Prior to June 15, 2011, Titan Iron Ore Corp. (OTC:TFER) was known as Digital Yearbook Inc. Pursuant to a merger with its subsidiary the company changed its name and ticker symbol. Yesterday, the price of TFER went through the roof.
When the markets closed, 244 thousand shares had changed hands, and TFER closed at $0.76 for an amazing 204% gain.
There doesn’t seem to be any apparent reason for the performance of TFER. The company is just starting out and hasn’t announced anything in a week.
The latest announcement could be something to get excited about for some people. On July 7, TFER announced that they had closed an acquisition agreement between TFER and J2 Mining Ventures Ltd.[BANNER]
Pursuant to the agreement TFER has been assigned J2’s interest in an option agreement for the purchase of an iron ore exploration property in Wyoming.
TFER has the right and the option to acquire a 100% undivided interest in the property for a total price of $7 million to the current owner Wyomex. The price will not be paid in full at once. Instead, it consists of an initial payment of $85 thousand and a 4.5% gross metal value royalty payable prior to production. Once the entire sum has been paid to Wyomex, the royalty will be decreased to 1.5%.
While the PR could be viewed as a promising start, it was issued a whole week ago, and yesterday’s action seems a bit too far off in time to be a response to the announcement. Whatever is happening, TFER may be worth keeping an eye on. Investors may want to see some more details about the current situation of the company before making an investment decision.
