CLGL Stock Comes to Life with a Triple Digit Gain
CLGL is the lastest stock to have the volume from out of no where this summer. Shares have already seen over 1.5 million of activity in this morning’s session with a triple digit gain. The Company hasn’t released any tangible news since May, but they have been active in fund raising with private placements. We would add this to the watch list, but certainly stay on the sidelines until some news is released.
About the Company:
California Gold Corp.’s mission is to identify, develop and produce rare and precious metals such as gold, silver and tellurium, a rare metal which has important uses in alternative energy. The value of precious metals has seldom if ever been more promising because on-going political and economic instability around the world continues to increase their value.
CLGL Recent News Announcements
The Company announced in May that it has elected to conduct a more detailed geophysics analytical program at its AuroTellurio project near Moctezuma in Sonora, Mexico, before commencing its previously announced drilling program at the project this month.
Of the three drilling targets that were defined on a geological basis, two of them, the southeasterly extension of the La Bambolla vein system and the deep-seated intrusive target area, respectively, will be further investigated using geophysical methods in order to better define the configuration of these targets at depth.
Recent Financial Statement Highlights
Cash on Hand: $717,753
Shares Outstanding: 112,159,593
Revenue: $0 (3 Months Ended May 31, 2012)
On February 11, 2011, the Company entered into a property option agreement (the “AuroTellurio Option Agreement”) with Mexivada Mining Corp. (“Mexivada”) to acquire up to an 80% interest in Mexivada’s concessions comprising its AuroTellurio tellurium-gold-silver property (the “La Viuda Concessions,” the “AuroTellurio Property” or the “Property”) in Mexico.
Under the terms of the AuroTellurio Option Agreement, the Company will acquire up to an 80% legal and beneficial ownership interest in the AuroTellurio Property by making certain cash payments and share issuances to Mexivada and incurring certain exploration expenditures on the Property. See Note 10 for the Company’s commitments under the AuroTellurio Option Agreement.
In March 2012, pursuant to a private placement offering, the Company issued 4,250,000 warrants to purchase 0.5 shares of common stock per unit. The Company recorded a derivative liability upon issuance of the warrants. The estimated fair value of the derivative warrant instruments was calculated using the Black-Scholes option pricing model and amounted to $101,985 at the grant date of March 16, 2012. The grants were re-valued as being $71,852 at the balance sheet date of April 30, 2012. The Company recorded a $30,133 change in value as unrealized gain in non-operating income for the three months ended April 30, 2012.
Private Placement Offering:
During the year ended January 31, 2012, the Company sold 16,000,000 Units for a total price of $400,000. As of January 31, 2012, cumulatively, the Company has sold a total of 77,478,258 Units for a total price of $1,936,956. The Company incurred closing costs of $19,000, resulting in net proceeds from the Offering of $1,917,956. The Company plans to apply the net proceeds of the closing primarily towards the AuroTellurio Acquisition (Note 4) and for working capital purposes.
On March 16, 2012, the Company completed the closing of a private placement offering pursuant to which the Company sold to various accredited investors and non-U.S. persons 4,250,000 Units of its securities for gross proceeds of $170,000, at an offering price of $0.04 per unit. The Company incurred closing costs of $1,750, resulting in net proceeds from the Offering of $168,250. Each of these units consisted of one share of the Company’s common stock and a warrant to purchase one-half share of the Company’s common stock at an exercise price of $0.06 per whole share. These warrants will be exercisable from issuance until twenty-four (24) months after the closing of this offering.
Source: CLGL 10Q Filed 6-14-2012
Stock Chart and Trading Highlights
30 Day Percent Change: -35.00
30 Day Moving Average: 0.0145
30 Day Average Volume: 29,458
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