The signing of a deal that could see revenues go up by around $200 million on an annual basis can often do wonders to stock and hence, it was no surprise that the Western Sierra Resource Corporation (OTCMKTS:WSRC) flew yesterday.
Trading Data
On Wednesday, WSRC stock gained 156.36% to $0.0705 with more than 25.91 million shares, compared to its average volume of 917.11K shares. The stock moved within a range of $0.0289 – 0.0980 after opening trade at $0.0289.
Western Sierra Resource Corporation Announces a $1.976 Billion Federally Funded Mitigation Agreement Executed September 17, 2022, by The Company’s Wholly Owned Subsidiary, Mitigation Solutions, LLC
The company announced that its fully owned subsidiary unit had reached an agreement with the Santa Maria Valley Water Conservation District for mitigating the Twitchell Dam and Reservoir. The agreement in question is valued at as much as $1.96 billion and it is going to be paid out over a 7 to 8-year period. Moreover, it is going to add as much as $200 million in gross revenues every year for Western Sierra Resource.
Naturally, the announcement was a source of considerable excitement for investors and as they piled on to the stock in a big way, it soared by a staggering 156% for the day. It now remains to be seen if the stock can continue to hold on to its momentum and add further to its gains over the coming days or not. This revenue influx every year on schedule is also going to give Western Sierra Resources the financial strength to promote its other projects.
Technical Data
WSRC stock is trading below the 20-Day and 50-Day Moving averages of $0.0336 and $0.0306 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0497.
