A theory about the price decline
It has been painful holding a stock with such potential as PLG lately as the selling has been persistent. I suspect that what we are seeing is the seller of the additional land package at TV Tower monetizing the proceeds of the transaction. Pilot Gold issued 1.25 million shares in this deal announced on September 5th (as well as $300 000). They say the shares were issued in "stages", though there is so far no explanation of what the stages were. The shares peaked at $1.20 around then and are now down nearly one third, despite continuing positive news flow.
The seller was Chesser Resources, listed in Australia, clearly a much smaller company than Pilot Gold, though also involved in gold exploration in western Turkey. They did a secondary offering to larger holders and raised about $2.5 million at around the same time. An added $1 million from sale of PLG shares clearly will come in handy. I suspect we are suffering the effect of this added seller in the market. With about 200 000 shares trading today one would hope we are nearing the end of this process and can look forward to fundamentals again driving the stock. One advantage for Pilot Gold is that the roughly $1.25 million that the newly issued stock was worth in September is credited against our spending obligation to our partner Teck and we are about to start on the third and last tranche of spending at TV Tower funded only by ourselves.
In these tough times for gold explorers any enhancement of the Treasury is welcome! By the end of 2014 the company should hold 60% of a very valuable new gold, silver and copper discovery, by the looks of the news flow