Yes, It's from yesterday's news. I knew as soon as I saw it that this stock was in for a beating today, although I must admit I didn't think is would be this bad. But having been on the side lines during the runup there was little I could do to profit from my thoughts. I could have shorted I guess but if I was wrong it would have been like stepping in front of an oncoming train. As it turned out I probably could have retired.
The news mentioned REG-S stock going to be used to increase its stake to 70%. REG-S is a dirty work and 20 minutes after the press release the high of the day was hit and started to sell off. A clear indication to me that people did not want to here about REG-S stock being issued.
Gary
(Full text of press release from Canadian Corporate News)
MARCH 19, 1997
Delgratia Mining Corporation Nevada Project Update
VANCOUVER, BRITISH COLUMBIA--Your Board of Directors is
pleased to report the results from the first 4 holes drilled
on the 75,000 foot drill program underway on the Nevada gold
project. All drill holes are vertical using reverse
circulation equipment. The results of the first 3 holes were
released on February 28, 1997 and are included with Hole 4 for
the sake of clarity and completeness.
Drill Hole Hole Depth Gold Zone Gold Assays
opt g/t
-----------------------------------------------------
1 440' 0-440' .084 2.88
2(x) 1180' 0-600' .033 1.12
3 1005' 0-880' .071 2.43
4 1120' 10-1040' .063 2.14
Note: (x) Remainder of Hole 2 below 600' awaiting assay
These four holes were drilled in a fence line cross
cutting the southern section of a gold anomaly. As previously
reported, Hole 2 is 300 feet west of Hole 1 and Hole 3 is 3700
feet easterly from Hole 1. Hole 4 is 3500 feet easterly from
Hole 3. Assay results from the remainder of Hole 2 will be
released when completed.
On the basis of current results, the Company has elected
to increase its interest in the project from 40 percent to 70
percent. Under the terms of the original agreement with
Philgold Investments, the Company is committed to spend $15
million on the project and to issue a total of 3 million
treasury shares by November 1, 1998. Any shares issued will
be effected pursuant to an exemption from the registration
requirements of the Securities Act of 1933, as amended (United
States) afforded by Regulation S.
Once completed, this transaction will bring the total
outstanding shares of the Company to 14.6 million.
Delgratia's current cash position is $12.5 million. Further
results will be reported as the drill program progresses.
On Behalf of the Board
Dr. Charles A. Ager, PEng, PGeo Chairman and President
FOR FURTHER INFORMATION PLEASE CONTACT:
Delgratia Mining Corporation
Dan Palikrousis
Investor Relations |
