There has been no news at all about Liberty Star Minerals (OTCMKTS:LBSR) in recent times but the company’s stock has suffered from a steep selloff nonetheless and gone down by as much as 18% over the past week.
Market Action
On Wednesday, LBSR stock moved down 6.50% at $0.4730 with more than 59k shares, compared to its average volume of 13k shares. The stock has moved within a range of $0.4600 – 0.5100 after opening the trade at $0.51.
Executes a Financing Agreement for Drilling Red Rock Canyon Gold Project, in Cochise County, Arizona
In this sort of a situation, investors might often feel that the move in the stock may be driven by speculation or panic. However, it could be a good idea for investors to take a look at the last bit of news that had emerged about the company earlier on this year in August.
At the time, the company, which is based out of Arizona, announced that it was the only holders of the Arizona State Land Department Mineral Exploration Permits for the Red Rock Canyon Gold Prospect. It was a significant announcement from the company and one that may have brought it onto the radars of many investors at the time.
It should be noted that the project in question is a part of the much bigger Hay Mountain Project that is owned by Liberty Star in the south eastern part of Arizona. At this point it could be a good idea to keep the stock in your watch lists and see if there is any recovery.
Key Quote
Board Director Boyd Gordon commented, ”Execution of the Agreements with Triton is our first step toward development of Red Rock Canyon in which we will first seek to confirm the results previously reported by other gold exploration companies, and if we are able to confirm those results, to then take steps toward development of a Mineral Resource. If our work on development of Red Rock Canyon is successful, it would be expected to result in an increase in the value of the Company’s assets and help to put the Company in position to seek the financing necessary to begin additional exploration and development work on potential copper deposits at our Hay Mountain Project.”
Traders Note
LBSR stock is trading below the 200-Day and 20-Day Moving averages of $0.57 and $0.63 respectively. PRKR, the stock is trading below the 20-Day moving average of $1.09. The stock is down 65% in the past 3-month.
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