Traders were enthusiastically buying the stock of Cline Mining Corp. (TSE:CMK
) (PINK:CLNMF) after the company updated the public technical information for their flagship project.
CMK saw the share price climb back up 7.6% on Friday on a heavy trading volume of over 8.4 million, which was more than three times the average of 2.5 million.
The boost came as traders reacted to the latest technical report update, which was published on Thursday June 9, 2011. The company reported 191.2 million tons of measured and 197.3 million tons of indicated coal resource to exist on the New Elk Mine project.
The report was done to reassure investors of the company's potential, as was advised by the Ontario Securities Commission. The new and updated technical report supersedes previous ones and has been made in compliance with NI 43-101.
Some investors had jumped off the ship earlier in the week as apparently the earlier reports weren't as trustworthy and lacked information. CMK stock price had lost ground on June 7 after the company closed a massive $86 million equities offering, which meant nearly 17.8% dilution.
Cline Mining sold nearly 31.4 million common shares at $2.75 per share and the proceeds will be used to complete the New Elk coal mine, as well as for general capital purposes.