Last Friday, Abot Mining Co (PINK:ABOT)
grabbed the climb and it continues to gain. Yesterday, the stock soared another
15.38% and jumped on the massive trade by trading over 38 million shares for the day.
The main reason for the gain should be a press release by Abot that came up on Feb 17. The announcement stated that the civil engineering work on the Aztlan 8B property has been completed with more definitive mapping and property delineation, and the Operator has engaged a geologist to further examine the collected information.
The optimistic news must have inspired traders, though Abot decided to secure the current up move by promotions.
The campaign was held yesterday when ABOT got promoted for $60,000, projecting a huge volume for the stock. In any case, if the promotion is not enough to ensure the gain, Abot has another way to do it.
This morning, the company issued one more piece of news reporting that the recently concluded civil engineering work on the Aztlan 8B project further indicated that the mineral deposit may extend beyond the strike zone into an adjacent property to the south.
The announcement and the promotion from yesterday might pump up ABOT stock price additionally, though it is still to be seen.
ABOT is a US based mining company engaged in discovering, acquiring, developing, producing, and marketing precious and semi-precious metal properties. According to the company's initial disclosure statement, as of September 30, 2011 it has no cash and cash equivalents and the accumulated deficit got 23 times higher as compared to the previous quarter.
The good news is that ABOT managed to cover its liabilities, however, its net loss substantially increased.
Management of Abot Mining stated that some existing and possible future environmental legislation, regulations and actions could cause additional expense, capital expenditures, restrictions and delays, the extent of which cannot be currently predicted.
Before production can commence on any properties, the company must obtain regulatory and environmental approvals. However, the procedure will incur costs to be in compliance with these regulations.
All the above-mentioned, along with the other risk factors listed in the company's statement, provokes many questions on the future operations of ABOT and light a red signal for investors.