The stock of Fancamp Exploration (CVE:FNC), (PINK:FNCJF) is probably making an attempt to bounce off the bottom it felt to earlier this month. Meanwhile, the company itself is trying to secure additional funds for its numerous projects.
On Friday, FNC went slightly 1% up on a large turnover of over 1.5M shares traded – this beats 7.6 times the average trading volume. Is this the start of a come-back for the stock? It is still early to say.
After setting a 52-week high at $0.78 in early February, the shares began to depreciate in a quick manner on the TSX Venture Exchange (CVE). As a result of the sharp fall, FNC has lost almost 37% over the last six weeks.
The company took some measures to raise funds last month. A week ago, it announced the increasing of its previously announced brokered private placement with Industrial Alliance Securities Inc. and Secutor Capital Management Corporation.
The purpose of the offering now is to secure over $9.7M. As stated, the money raised from the placement will be used for the exploration of the company’s Quebec and Ontario properties and for general working capital.
This ambitious financing is actually good news, but is it going to be enough for Fancamp? As mentioned in an earlier article, the company holds a 17.5% working interest in more than ten joint ventured properties. Certainly, they will require a significant investment for their further development in the years to come.
