The Bizarre Activity Around Silver Stream Mining (OTCMKTS:AGSM) Continues
Back in November 2013, Silver Stream Mining (OTCMKTS:AGSM) announced an option agreement with an entity called Sage Gold Inc. (CVE:SGX) which, the press release says, can allow them to acquire 85% undivided interest in a gold property located in Ontario. The press release sounded positive, but investors didn’t seem particularly impressed. The volumes remained non-existent and the price refused to move.
In January, AGSM said that there’s been some changes in the management team and that some experienced people will be helping the company succeed. Once again, nobody was paying attention.
A couple of weeks later, the company announced another agreement with SGX, this time for a different gold property and that’s when the stock finally saw some action. The volumes were far from impressive, but they showed that people are, after all, reading AGSM‘s press releases.
On March 26, AGSM‘s management team said that they want to make the first investment into the Zonia copper project in Arizona and although the press release told us that quite a lot of payments need to be made, investors were now taking the company more seriously. The price remained hesitant, but the volumes certainly picked up.
Over the last couple of weeks, interest in AGSM has been particularly intense. The dollar volume isn’t quite as impressive as the one logged by some controversial pot stocks like Creative Edge Nutrition Inc (OTCMKTS:FITX), but yesterday, AGSM managed to shift more than $475 thousand worth of shares which means that lots of people are now focused on the ticker and are waiting for it to do something interesting. Unfortunately for them, at the moment, it appears to be somewhat reluctant to do so. The question is: “Is this about to change?“.
That’s really hard to predict because putting your finger on what exactly is causing the increased interest is not that easy. On May 12 and on May 22, the company issued two press releases. One was about a definitive agreement relating to the acquisition of the Zonia project and according to the other, AGSM will receive some money from a company called Placer Mining Corporation and in exchange, they’ll perform some due diligence on a mine located in Idaho.
The two announcements certainly sound positive, but are they enough to keep the fire going for so long? And will the increased volumes continue? Also, is the ticker finally about to make a significant move in the right direction?
As you can see, plenty of questions, but no answers.
AGSM remains a speculative play and as such, it’s extremely risky at the moment. That’s especially true because, as we mentioned a couple of days ago, the company’s latest financial statement doesn’t look like much and at the same time, some equity is seeing the light of day at a discount.
The ticker could really go either way from here and although so far, it has been able to avoid wild swings, they could come at any time. Treading carefully and weighing the risks is, as always, absolutely essential.
