News: Dragon Mountain Gold is cash backed and trading at multi year highs

Dragon Mountain Gold's (ASX:DMG) shares have surged to a multi-year high of $0.024 today, a 140% rise from March this year.

The company is capitalised at $4.5 million, holds over $4.75 million in cash and is debt free.

In its most recent quarterly, the DMG stated that it has been assessing the merits of proposals presented to it on various projects and will continue to look within Australia and overseas in order to find a suitable asset for the company.

Until recently, DMG's flagship asset was its Lixian gold project in central China which hosted Inferred and Indicated Resources of 4.3 million ounces.

On 7 November 2011 an offer was received from Ding Jin, a subsidiary of Zijin Mining Group Co, to purchase the Lixian Project and related licences for $151 million.

On 20 July 2012 the company returned the majority of the proceeds from the sale to shareholders by way of a dividend and return of capital totalling $150 million.