A mere Letter of Intent /LOI/ made for a spectacular market performance of Auric Mining Company (PINK:AUMY)
on the stock market last Friday. Not only did AUMY shares spike 45% to $0.0551 per share, the highest price since early-November, but it also hit a 52-week high in terms of volume. More than 3.5 million shares changed hands on the last trading day of April, which is head and shoulders above the modest average volume of 41K.
Prior to Friday's jump, however, AUMY stock also made considerable gains during Thursday's session, shortly after it introduced its latest quarterly report to the general public. Now, third parties are willing to capitalize on this momentum by launching an advertising campaign in favour of AUMY stock. Currently evaluated at $45 thousand, the investor awareness program has once again sent AUMY under the spotlights.
Previously being a shell company, Auric Mining Company has now embarked on a long quest for gold-rich properties. The company is focused on acquiring assets having an 'undeniable' potential to contain deposits of base and precious metals. Last Friday, AUMY announced its intention to acquire a Nevada-based corporation holding a 50% interest in a 'substantial gold bearing property.' The latter has a rich history. As it seems, other companies had explored the area before, but were forced to withdraw for lack of funds.
According to the unaudited quarterly report mentioned above, AUMY concluded the quarter ended Mar. 31, 2011 with:
- $103K in current liabilities;
- zero income and a net loss in excess of $22K as compared to $450K+ incurred in Q1 of 2010;
Obviously, the financial health of the company is far from excellent. Yet, AUMY managers can always lure themselves into diluting stockholders. The company's authorized stock amounts to as many as 1 billion shares. So far, only 7% of it have been issued and outstanding.
Nevertheless, should AUMY really manage to strike gold, a possible dilution will hardly have any adverse impact on its avid supporters.