Very Few Warrants Only 646,061 warrants are outstanding, excluding the 1,750,000 warrants that Lode Star owns (750,000 at 26 cents, 500,000 at 25 cents, and 500,000 at 44 cents). Lode Star is due another 1,250,000 units from the Goldfield deal (unit is one share and one warrant)
The 646,061 warrants expire 10-21-12 and are at 33 cents.
A lot of warrants relative to the amount of shares outstanding can pump the brakes on any share price spike caused by spectacular grades. Not the case here.
Also, recent private placements done cheaply can do that too (probably contributed to the downdraft after the 5-17-11 spike). Good thing is that the last private placement closed in October 2010 (14,000,000 shares at 30 cents). The prior one was in September 2009 and was for 7,394,500 units at 17 cents. (Each unit consisted of one share and one half of one share purchase warrant, each whole warrant entitling the holder to acquire a common share at an exercise price of
.25 for a period of 2 years from closing).