Mustang Alliances, Inc. (OTC:MSTG
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) has been moving up progressively for two weeks already. On Friday, the stock added
another 2.17% to its price, while its traded volume got double. However, it looks like Mustang is determined to climb higher this week.
It was just on Friday, when the company reported that its exploration program has been completed on the Potosi property located in Honduras. The company's team has been highly encouraged by the findings of the sampling program and expects to commence its 2012 work program mid to late February.
The news does sound inspiring, though it was not the only step the company made towards the top of the chart.
During the weekend, MSTG got heavily promoted by different promoters for a total compensation of $100,000 and the campaign continues today. Apparently, the company did its best to fuel up the current up move of their stock and the result is just about to be seen.
Mustang Alliances, Inc. is a junior mining company with a focus on the acquisition and development of precious metals properties in Honduras. As of September 30, the company's cash position has improved, however, its accumulated deficit during the exploration stage jumped up. In addition, the net loss substantially rose up.
The biggest issue for MSTG appears to be the fact that the company has not yet generated revenues from planned principal operations and is considered an exploration-stage company.
In other words, there can be no assurance that sufficient funds will be generated from operations or that funds will be available from external sources such as debt or equity financings or other potential sources. Meaning that, at this point, the going concern status of Mustang remains valid.