Since March this year Amerilithium Corp. (OTC:AMEL
, AMEL message board
) is keeping traders excited with numerous positive updates on the started exploration program at its Lithium project in Nevada. Yesterday evening, the promoters also came back
for AMEL and will try to secure another hot trading session today.
As of yesterday AMEL has lost most of the value gained during the days after the start of the drilling was announced. Yesterday AMEL dropped 8.57% down on a volume of over 408,000 traded shares and closed the session at $0.32. Thus, the latest from all of the updates, provided before market open yesterday, was not able to make the share price jump up again to $0.50 or higher.
Unfortunately, the released "update" said nothing more than some previously announced news, as well as the implication that the expected laboratory results from the initial 3 holes of AMEL 8-hole drill program on the Paymaster Canyon Lithium Project in Nevada are not out yet and will come with a delay.
One more disturbing fact is that Amerilithium has been a regular pick of stock promoters in the past, who have received huge compensations for advertising the stock. The e-mail in which AMEL was profiled yesterday did not contain a particular compensation, though a full disclosure is likely to follow. At the beginning of March, AMEL share price and volume spikes were supported by a $50,000 promotional campaign.
As of the end of last year Amerilithium did not have enough cash to complete its exploration program, though the company has a financing agreement on place that could provide up to $10 million on a draw-down basis. By end-December 2010 AMEL had drawn $1,200,000 and had issued 1,218,891 shares to the investor, yet its cash position for the end of the year was about $230,500. Subsequently, in February the company drew down another $200,000, and in March 751,880 shares were issued to the investor.