This stock traded up to .008 just 2 weeks ago plus its a
long way from yearly highs smacked down by a raising a lot
of overhang was cleared at .004 yesterday the key here is a
break through .005 should this happen and support build this
can quickly run towards 1c for those interested a great
article below out overnight from Proactive investors.
Minera Gold shares set to move on reduced overhang and funding package
Minera Gold (ASX: MIZ) shares have risen 66.67% to $0.005 today on almost 101 million shares traded, the highest volume for a year.
With recent conversions of convertible loans into ordinary shares at $0.0032 and $0.0036 per share, there was likely to be an overhang over the stock.
However, today's and recent trading volume could imply that investors are snapping up the stock after Minera's recent transformative US$7 million funding package.
This consisted of US$5 million in payments from precious metals streaming company SilverStream under a gold purchase agreement and firm commitments from new and existing shareholders for A$2.1 million in convertible loan proceeds.
The funding will recapitalise Minera Gold and fund all capital required to complete the planned expansion of the Torrecillas Gold Project in Southern Peru.
Torrecillas had a defined maiden JORC resource delivered Jan 2012 of 102,100 ounces of gold at a stunning average grade of 16.1 grams per tonne gold.
Analysis
The new buying of Minera shares looks set to continue as the recapitalisation enables the company to boost production at its Torrecillas Gold Project.
The changes instituted and recapitalisation and growth plans are a watershed for Minera in 2014/15.
Proactive Investors believes the net effect of the change is the shares could advance beyond the current $0.005 toward the $0.008 - $0.01 level as it moves to increase Torrecillas production to 19,500 ounces of gold by November 2014 and subsequently to 28,000 ounces og gold in 2015.
That means that revenues from gold sales could be upwards of $14-15 million which for a company with a market cap. of circa $2.6 million is significant.
