The past few days have been quite tough for investors in Exla Resources Inc (OTCMKTS:EXLA) as the stock continued to head downwards and the trend continues yesterday as the stock ended up with a decline of 4%.
Trading Data
On Monday, EXLA stock slid 4.55% to $0.0105 with 411k shares, compared to its average volume of 1.13 million shares. The stock moved within a range of $0.0102 – 0.0120 after opening trade at $0.0115.
EXLA Resources Leverages Asset Base with Sale of Its Silver Strike Interest
As it happens, the decline in the Exla stock on Monday took the total decline over the course of the past week to as much as 37%. There was no fresh news about the company on Monday but it may be a good idea to take a look at the announcement from Exla last Friday.
The company announced on the day that it had reached an agreement for the sale of its interest in the Silver Strike Project to the company Tarku Resources Ltd. The project in question is situated in Tombstone mining district in the state of Arizona and the district is of historical importance for the mining industry. Exla decided to sell as much as 25% of its interests in the property and in exchange it is going to get 7000000 Tarku shares.
By way of this transaction, Exla is going to get an interest of 9.65% in Tarku. However, it seems that investors weren’t particularly trilled with the transaction.
Key Quote
Julien Davy, President, and CEO of Tarku, stated: “This new agreement is a win-win solution, as EXLA now benefits from significant exposure to a consolidated 100% of the Silver Strike Project, as well as a focused exploration partner committed to its development. Tarku has lowered its commitments to acquire the project and will have better control on its exploration expenses. The consolidated ownership will also greatly facilitate capital raising initiatives going forward.”
Technical Data
EXLA stock is Moreover below the 20-Day and 50-Day Moving averages of $0.0149 and $0.0158 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0206.
