On Friday TUFF stock closed the session at $0.81, adding another 9.46% to its value and making the total gain since the announcement of the secured funds exceed 50%. The trading volume of the usually very illiquid stock kept growing and reached almost 630,000 shares.
Last Monday TUFF announced in a press release to have raised $100,000 in a private placement. The securities sold were not registered with the SEC and consisted of 166,667 shares of common stock at a price of $0.60 and warrants to purchase the same amount for $1 per share. Although there is still no corresponding SEC filing that would confirm the event, and considering also that TUFF stock has received strong support from some trading alerts, traders got excited on the news that Tuffnell would now have working capital for its phase 2 exploration at its only project, the Little Butte Gold project in Arizona.
It is questionable if that will be the last capital raising event, since the company had at the end of June 2010 around $260,000 in cash and had to do additional cash payments of over half a million dollars over the next years under the terms of the option for the acquisition of the Little Butte property. Further, Tuffnell has to do exploration expenditures amounting $250,000 by March 2011 and a total of almost $1.4 million thereafter.
Doubtful is also the future revenue stream, as no economically viable mineralization on the property has been confirmed yet.
