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Stellar AfricaGold Inc V.SPX

Alternate Symbol(s):  STLXF

Stellar AfricaGold Inc. is a Canadian precious metal exploration company. The Company is focused on exploring for gold in the Kingdom of Morocco, and Cote d’Ivoire. The Company's projects include the Tichka Est Project and the Zuenoula Gold permit. The Tichka Est gold project, comprising seven permits aggregating 82 square kilometers, is accessible year-round by road via a national and regional road to the village of Analghi located near the mineralized gold zone. Its Zuenoula project is a 396 square kilometers (km2) license in the Marahoue Department in central Cote d’Ivoire, approximately 300 kilometers (km) north of Abidjan. The Zuenoula Exploration license application straddles the same NE/SW major structure that hosts the Abujar and Tietto mineral deposits. The project is located 100km north-west of the city of Yamoussoukro, the capital of Cote d’Ivoire.


TSXV:SPX - Post by User

Bullboard Posts
Post by stargazer1on Feb 19, 2013 2:05am
244 Views
Post# 21007520

Reverse split may be OK?

Reverse split may be OK?

First I will have to say that I am a new investor. I just recently bought shares in the company and so I am not that familiar with it although I did first research the company before buying the shares. Using a reverse split to bring up the price per share so that a company can sell shares to raise money rarely works because people are used to seeing it at a lower price and so the stock price falls so fast that the company doesn't have time to arrange to sell the shares at a higher price. And doing it two times in three years really sounds bad and is bad. It usually means that a company is a sham. However, Stellar Pacific doesn't fit these parameters and so may actually end up OK. It has worked up its property and even has a substantial joint venture partner. According to the April 2012 financial statement, at that time it had cash of $1.6 million and operating expenses of $258 thousand dollars. Few junior exploration companies have even close to that amount of cash. Also the company is working with and helping the local population and that is a big political positive situation. The company has also previously helped out the shareholders by distributing .133 shares of TomaGold for each share of Stellar Pacific. So someone that had 10,000 shares of Stellar Pacific stock would then also have 1,330 shares of TomaGold. In addition to that the company itself holds 5.5 million shares of TomaGold which can either be sold to raise cash or be used as collateral for a loan. So it looks like the company, along with its joint venture partner has the ability to continue to work up the property for awhile and while they are doing that, gold appears to possibly be at the point where it can start advancing again and this by itself may make it easier for the company to raise more money. But still with a reverse split and probable subsequent price decline it looks like it will be a long wait before I get back to even. With the number of shares that I have, if I tried to sell now I would probably end up with a big loss. I'll wait and see what the future brings.

Bullboard Posts