Thursday, September 2, 2010

Canyon Resources up after West Africa gold acquisitions

Gold in West Africa seems to be one of the favourable and fashionable areas on the market at the moment and there seems to be quite a rush of juniors acquiring projects in countries such as Burkina Faso, Senegal and Ghana.

Canyon Resources (CAY) is the next cab off the rank to also acquire projects.  The company has only been listed over a few months and raised $3.5 million through it's prospectus to explore it's gold project in Cue, Western Australia and to also investigate potential investments in West Africa.

Today the company announced a binding agreement to acquire Askia Sarl Pty Ltd and the two gold projects it holds (Taparko North and Tao Projects in north eastern Burkina Faso).  Canyon Resources has decided to conserve cash and purchase the project via issuing shares to Askia Sarl Pty Ltd leaving the company plenty of cash to explore.

CAY shares are up $0.07 to $0.36 today after the news.  CAY has very little shares on issue (just over 27 million) which means there are very few tradeable or 'free floating', this is evidenced by the many gaps in market depth on the sell side and make it pretty tricky (and risky) to try enter and exit a position.

No comments:

Post a Comment