I posted about Dragon Mountain Gold (DMG) two months ago regarding the sale of their Chinese assets. When the posting was made the stock had closed at $0.41 and since then the stock price has gradually increased and hovered around $0.45.
A week ago the company confirmed that all approvals have been received and the transaction was completed. The company are due to receive approximately $150 million as a result which equates to a cash backing of $0.62 per share. This has seen liquidity in the share price improve substantially and a greater interest in the stock.
Unfortunately I haven't been posting too much in the last few months as the small cap speculative end of the market has been very tough in light of the overall market and worries about Europe's sovereign debt. It is these kind of trades or investments which are a good target as they almost have a built in floor or protect on the downside.
I recommend setting a news alert on this stock to be able to monitor any announcement made on what the company will be doing with the funds. From the announcement made on 07/11 we only know the following thus far:
"The proceeds of the sale would allow the Company to actively pursue other investment opportunities in the resources industry. The directors will also consider other capital management alternatives with
respect to the proceeds."
DMG shares last traded at $0.495.
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