Siga Resources (OTCBB SGAE) Hot Penny Stock to Watch
Stock in Siga Resources (OTC:BB SGAE) is trending up today gaining 45% at the mid-point of the today’s trading session. Well over 1 million shares of trading volume makes this one of the hot penny stocks to keep an eye on in a otherwise lackluster day.
SGAE News Announcements
The Company recently announced that it has successfully negotiated an agreement for the purchase of American Hill Aggregates LTD interest in Lot 57, which underlies a portion of its Lucky Thirteen Placer Claim. Siga expects to close the purchase no later than the end of April 2012.
Siga spent $400,000 for its bulk mining test program which mined and tested over 8,000 cubic yards. The results clearly indicated that the acquisition is warranted, which led to successful negotiations with American Hill.
The acquisition of the nearly 20 million tons of placer gravels owned by American Hill, gives Siga more than a 20 year mine life at planned rates of production of approximately 500,000 raw tons per year. Siga has permits and plans in place and anticipates to be in production within a 6 to 8 month time frame.
Financial Statement Highlights for Siga Resources
On January 16, 2011, the Company entered into a Property and Royalty Agreement with Peter Osha whereby the Company would have acquired Peter Osha’s Lucky Thirteen Placer Mining Property near Hope, British Columbia, Canada in exchange for $1.5 million Canadian plus a 3% net smelter royalty.
On May 12, 2011, the Company entered into a joint venture agreement with Big Rock Resources Inc. whereby, the Company transferred its interest (and related payments due) in the Lucky Thirteen Mining Property to Lucky 13 Mining Company Ltd. This transfer provided the Company with a 50% ownership interest in Lucky 13 Mining Company Ltd. Per the joint venture agreement; Big Rock Resources Inc. has agreed to fund Lucky 13 Mining Company Ltd. to provide financing for exploration and for its mineral lease payments. Payments due from Big Rock Resources Inc. to Lucky 13 Mining Company Ltd. are as follows:
1. Payment of $400,000 for the initial work program and property payments on the Project, payable as follows: a. $50,000 by May 14, 2011, which has been received; b. $350,000 by May 31, 2011 which has been received.
Source:March 20, 2012 10Q SGAE
SGAE Stock Chart and Trading Highlights
30 Day Percent Change: 11.88
30 Day Moving Average: 0.1719
30 Day Average Volume: 69,623
Last updated byat .