This is an odd acquisition IMO. I could understand if they were purchasing some producing assets, as that would effectively transfer their cash balance into ongoing cash flows to fund ongoing drilling at Capitola. However, they have bought some more exploration acreage that they'll have to sink cash into (with no guarantee of a return) and issued 100M shares in the process (if I've read correctly). This purchase suggests to me that they've given up on Capitola being the 'company maker'.
PYM Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held