One of the companies that may be flying under the radar at this point in time is Tonogold Resources Inc (OTCMKTS:TNGL). At this point in time, the company owns significant rights for the acquisition of a major portion of the mineralized zone lying in the Comstock Mining District.
Trading Data
On Wednesday, TNGL stock moved down 2.55% to $0.0650 with more than 82.38K shares, compared to its average volume of 376.46K shares. The stock moved within a range of $0.0650 – 0.0680 after opening trade at $0.0668.
Tonogold Announces Receipt of Conversion Commitments Representing in Excess of 73 Percent of Its Outstanding Convertible Loan Notes
Yesterday, the company was in the news after it announced that it had received commitments by way of which as much as 73% of its total principal on its outstanding convertible loan notes were going to be converted into equity. That was a major new development for the company and one that is going to be looked into with some interest by both analysts as well as investors.
The interim Chief Executive Officer of the company William Hunter spoke about the developments as well. He noted that the commitment to turn the debt into equity was an indication of the considerable support for the business plan that Tonogold Resources has in place.
At the end of the day, if debt holders did not believe in the company then they would not have committed to turning debt into equity. It now remains to be seen how the market reacts to this move.
Key Quote
William Hunter, Interim CEO said: “These conversion commitments are a strong show of support for our business plan from our investors and a recognition of the significant potential of the district. The commitments substantially reduce our debt load, which we consider a critical aspect of advancing our gold and silver assets. We believe that the substantial reduction of Tonogold’s debt will facilitate the Company’s access to the capital needed to expand its drilling and exploration program going forward.”
Technical Data
TNGL stock is trading below the 20-Day and 50-Day Moving averages of $0.0669 and $0.0722 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.1057. The company has a total market capitalization of $8.84 million.
