Nelly Shishkova

Handeni Gold Inc (OTC:HNDI) Jumps Up Again

by Nelly Shishkova February 20, 2012
After a one-day loss, Handeni Gold Inc (OTC:HNDI) jumped up again. On Friday, the stock gained 12% and made a HNDI_chart.pngspectacular volume spike on the market.

The most reasonable explanation on the sudden price changes turns out to be the latest news by the company.

The latest was released last week when Douglas Lake Mining Inc announced that it has effected a name change on the OTC Bulletin Board to Handeni Gold Inc and got a new trading symbol.

Being reported, the news inspired investors and the company's stock price flew up. Though, on the next day the up move was broken. Now HNDI is climbing up again, not certain for how long this time.

Handeni Gold Inc (formerly Douglas Lake Minerals Inc.) is an exploration-stage company focused on the acquisition, exploration and development of mineral resources located in Tanzania, Africa. Historically, the company used to trade notably higher, though since last year the stock price has moved down significantly.

During the last months, Handeni has filed a number of updates with the SEC. However, these did not pump up the stock price for a long period of time.

HNDI_logo.pngAs of November 30, 2011 the company had cash of $4,617,930 and working capital of $8,415,478. The management estimate that their total expenditures for the fiscal year ending May 31, 2012 will be approximately $7 million of which they have already spent approximately $3.3 million on exploration expenses. At the same time, the deficit accumulated during the exploration stage reached over $107 million and the revenues kept missing. Instead, the net loss and expenses rose up.

In any case, the big issue for Handeni is the fact that they have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive exploration activities. However, there is no assurance that a commercially viable mineral deposit exists on the properties underlying the company's mineral claim interests. Besides, a great deal of further exploration will be required before a final evaluation for its future is determined.

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