At the beginning of another trading week, it may be a good time for investors to consider taking a look at some of the stocks which may have clocked handsome gains this past Friday. One of the stocks to have made a big move last Friday was that of Three Valley Copper (OTCMKTS:TVCCF), which ended up with gains of as much as 30% for the day. In light of such handsome gains, it may be a good idea for investors to take a look at the company’s operations and the developments that may have led to the gains. Can the stock hold on to its momentum and add to its gains today? It’s time to figure it out.
Trading Data
On Friday, TVCCF stock surged 30.46% to $0.0227 with 63K shares, compared to its average volume of 64K shares. The stock moved within a range of $0.0214 – 0.0240 after opening trade at $0.0240.
About The Company
The company is based out of Toronto in Canada and is mainly involved in production of copper from the MineraTresValles, its primary asset.
The MineraTresValles asset is situated in Salamanca in Chile and Three Valley Copper owns 95% of it. In addition to that asset, the company also owns exploratory lands to the tune of as much as 46000 hectares in the region.
Three Valley Copper Provides Update on MTV’s Filing for Creditor Protection in Chile
Back on Friday, the company announced that the Chilean court had responded to a filing related to a Judicial Restructuring Procedure that had been filed by MineraTresVallesSpA. It was noted that the response to the same had been delayed. It should be noted that MineraTresValles had started the entire process by submitting the filing back on June 13 this year. The filing had been made with the purpose of getting protection from creditors. In so doing, the subsidiary would also be able to get the necessary long term financing so as to continue with its operations without any problems.
The filing is actually similar in its effect to the provisions that are in place in the Companies’ Creditors Arrangement Act in Canada. The court order that MineraTresValles is seeking is going to put a stay order on claims from creditors. In turn, the company would be allowed to raise long term credit with the view that creditors would be able to restructure the debts. Such a move is going to expected to lead to greater stability for MineraTresValles and provide it with the secure foundation that could lead to long term prosperity.
However, the court has delayed the passing of the order due to a procedural delay. However, it was announced on Friday that the order may come through by the end of this month. However, if the order is not actually granted by the Chilean court then things could turn fairly tricky for MineraTresValles. In that eventuality, it would need to liquidate its assets and if that happens, it could come as a major blow to Three Valley Copper. It may now be a good idea for investors to keep an eye on the developments and the price action in the stock at the same time.
Technical Data
TVCCF stock is trading below the 20-Day and 50-Day Moving averages of $0.0222 and $0.0278 respectively. Moreover, the stock is trading below the 200-Day moving average of $1135. The company has a total market capitalization of $2.54 million. The stock is up 17% over the past month
