Last Tuesday, The Graystone Company, Inc. (OTC:GYST
, GYST message board
) announced successful completion of phase I of its Gorilla project plan in Peru. While the news certainly attracted investors' attention, its impact only lasted for one single session. Now, GYST has found itself in the midst of a classic promotional campaign
Tuesday's news that the GYST had constructed a mining camp on its Gorilla gold property indicated that the company's project plan continues on schedule and lured third parties into launching a two-day paid advertising campaign in support of GYST shortly prior to the beginning of yesterday's session.
At the end of the day, GYST closed at $0.095 per share, losing 16% in value despite the promotion. What will happen during the second day of the promotion has yet to be seen in today's session.
Even though the above mentioned news is fairly positive, GYST has a long way to go before commencing actual gold production. The company has yet to map the area, acquire suitable processing equipment and conduct an environmental impact study. So far, so good. However, GYST will have to rely upon external funding in order to proceed with the implementation of its plan.
As of Sept. 30, 2011, GYST had $623 in cash, negative working capital of $16 thousand and a quarterly net loss of $273K. Needless to say, its future as a going concern depends on whether it will manage to raise sufficient capital to keep the ball rolling.