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Victoria Gold Corp VITFF

Victoria Gold Corp. is a gold mining company. The Company’s flagship asset is its 100% owned Dublin Gulch property, which hosts the Eagle, Olive and Raven gold deposits along with numerous targets along the Potato Hills Trend including Nugget, Lynx and Rex Peso. Dublin Gulch is situated in the central Yukon, Canada, approximately 375 kilometers (km) north of the capital city of Whitehorse. The property covers an area of approximately 555 square kilometers and is the site of the Company's Eagle and Olive Gold Deposits. It also holds a suite of other development and exploration properties in the Yukon, including Brewery Creek, Clear Creek, Gold Dome and Grew Creek. The Eagle West target area lies as close as 500 meters northwest of the main Eagle Gold Deposit and hosts the exposures of the granodiorite. The Raven target is located at the contact zone at the extreme southeastern portion of the Nugget Stock. The Brewery Creek Project is a past producing heap leach gold mining operation.


GREY:VITFF - Post by User

Comment by MVargason Dec 22, 2021 4:32pm
162 Views
Post# 34256077

RE:RE:RE:RE:RE:VGCX' s huge short is reminiscent of Pretium.

RE:RE:RE:RE:RE:VGCX' s huge short is reminiscent of Pretium.
EdwardBlake wrote: It's being done by algorithmic trading. They target areas where a lot of stops are sitting. Short stocks below that level, trigger stops, cover short. Rinse,repeat. 


The key word in your scenario is "cover".  That would result in no net increase in shorts.  That is not what is happening here where the number of outstanding shorts jumped by 1.7 million to a total of 3.7 million.

Eventually these borrowed shares have to be returned unless the stock price goes to zero.  So it would normally be comforting to know that at least a large part of the share price decline is not due to fundamental changes, but by shorting.

In Victoria's past, a big jump in short positions was due to a related financing where the shares could be shorted in the market and replaced by shares acquired in a financing.  I've seen this in private placements and in Orion's first divestment of shares.  A private placement would not seem  be a possibility this time, but it is possible that Orion could have an agreement to sell x million shares based on the share price at some future date.  Not likely but possible.

Who else gains from a drop in Victoria's share price (other than shorters who hope to cover at a lower price)?  A prospective acquiror.  As I posted earlier, you can sacrifice a loss on 3.7 million shares if it means you can acquire the balance of the 62 million shares at a lower price if the current share price is several dollars below what it otherwise would have been.
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