Western Sierra Resource Corporation (OTCMKTS:WSRC) jumped 48% after the company announced the execution of an agreement with Silver State Mining. Western Sierrais planning to acquire a 70% Silver State Mining’s common stock for $10 million, which will be used to commence development in Sage Hen Mine in western Nevada.
The company has confidence in the project as WSRC’s directors, and officers will invest the $10 million of the 100 ton per day plant directly to avoid shareholder equity dilution. As a result, only $1.5 million out of the $10 million is needed within the next 60 days to commence recovery operations and production, with $2 million given after 60 days and an additional 41.5 million in 90 days. The remaining $5 million will be issued after 120 days.
The companies will immediately build the 100 ton/day plant, with 1100 ton/day plant expected to follow. The company will provide additional details on its progress. In the coming weeks, WSRC is stock to watch.
Market Reaction:
On Wednesday, WSRC stock soared 48% to $0.40 with more than 64.41 million shares, compared to its average volume of 8.59 million shares. The stock has moved within a range of $0.2320 – 0.4920 after opening the trade at $0.265. Over the past 52-week, the stock has been trading within a range of $0.0045 – 0.4920. The stock made a new high of $0.4920 in the previous trading session.
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