While countless businesses have been suffering amidst some of the harshest economic conditions in living memory, one company that has not allowed itself to be adversely affected by recent global financial strain is the Hunt Gold Corporation. In fact, quite the opposite has occurred. The past six weeks have been brimming with positive developments for the company.
Early January signaled hope for the New Year, with desirable drilling results returning from several of the company’s prospects; most notably perhaps, the “Mockingbird” claim. Combining its own exploration of the property with the findings of previous stakeholder, Anaconda (shut down by parent company for unrelated reasons), Hunt now believes its “Mockingbird” project to be capable of producing up to one million ounces of gold. The information provided by January’s preliminary round of exploratory drilling is expected to greatly bolster the effectiveness of the next campaign, slated for this month.
January 16th brought the announcement that Hunt had finalized the details for the sale of its “Lookout Silver” mine. The transaction was completed just eight days ago, in the amount of $65 million; funds that will support Hunt’s other endeavors.
Among these endeavors, was the January 20th appointment of Pat O’Hara, Ph.D, as the company’s new senior geochemist. One of the leading authorities on Central Arizona’s geological makeup, he also holds a spot on the Arizona Department of Mines and Mineral Resources’ board of governors. Pat O’Hara is in the perfect position to assess the viability of Hunt’s numerous Arizona-based prospects. Hunt’s current officers expect his input to be instrumental in increasing the corporation’s overall effectiveness.
In addition to a new senior official, the sale of “Silver Lookout” mine, and increased exploratory efforts across the board, Hunt also entered into the sale of another of its assets; American Molygold Corp. The company expects the transaction to be settled later this month with the exchange of the molybednum interest for $620 million in common stock of USA-based, Independence Strategic Minerals, Inc.
February 3rd saw the initiation of efforts to establish a stock repurchase/cancellation program; the funds for which to be obtained with a loan secured against a portion of the $65 million in proceeds from the “Lookout Silver” sale. Hunt noted the belief that its stock is seriously undervalued, and intends to dispatch this problem by significantly reducing the amount of outstanding shares.
This, coupled with the other developments of the last month-and-a-half, seems to allude to a turning-point for this company. Shares are cheap at present, but it is clear that much is being done to solidify a path which leads in the right direction. What this means, is that now is an excellent time to give the Hunt Gold Corporation a closer look, for soon, company stock may be ‘as good as gold’.
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