Nevada Gold Corp (OTCBB:NVGC) Reaches New Heights Thanks to Pump

Last Wednesday we informed you that a $800 000 pump had begun for the mining company Nevada Gold Corp (OTCBB:NVGC). With the nonstop barrage of email alerts that arrive almost daily interest in the stock has remained at record levels. Yesterday more than 3.4 million shares were shifted throughout the session pushing the ticker up to $0.38.

The promotion is led by Stock Castle and WallStreet Advisors with the disclosed paying party being Wimtak Systems LTD. In the latest touts both newsletters have started talking about NVGC going as high as $2 per share which sounds extremely optimistic for a company that finished the quarter ending August 31 with exactly $14 in total assets. The rest of the financial results are equally as disheartening:

• $183 thousand total liabilities
• ZERO revenues
• $4090 net loss

There are also 24 million shares sold to 34 investors back in 2008 for just $0.002 per share (after the 8.5-for-1 forward split). With the currently inflated price per share thanks to the promotion these people can bag considerable profits.

Not to mention that playing pumped stocks has become riskier than ever. Last Friday the SEC intervened and suspended yet another stock with an active pump campaign – Sovereign Lithium Inc (OTCMKTS:SLCO). The suspension came a couple of days after the distribution of a paper mailer touting the company was started.

The latest PR announcements form NVGC talked about the Diamond Jim Mine in Nevada. The company has hired Brian Brewer and Associates to conduct the exploration program on the property. Still we have our doubts because in order for NVGC to acquire 75% of the mine they have to pay $125 thousand in just the first year according to the agreement. Such funds are well beyond their reach for the moment and investors should expect quite a lot of dilution. That is, if NVGC actually decide to exercise the option agreement.