Nikolay Tomov
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Woulfe Mining Corp. Stock (CVE:WOF), (PINK:WFEMF) Jumps On a Strategic Financing Completion

by Nikolay Tomov Jan 6, 2011
After seeming to have been asleep at the $0.280 level, the shares of Woulfe Mining Corp. (CVE:WOF), (PINK:WFEMF) suddenly woke up, and they made this in proper style.  Yesterday, on the TSX Venture Exchange (CVE) not only did the price climb by 23%, but the trading volume was more than impressive too.Woulfe_Mining_-_Chart.png

The 6.5M turnover exceeded almost five times the average for the company, and made WOF one of the most demanded items on the CVE market.

This jump was not unexpected. The high volumes during the previous three sessions were forecasting such a development. But the trigger must have been yesterday's press release of Woulfe Mining Corporation that informed about the closing of a non-brokered private placement for $10M, secured by the company's strategic partner Korea Zinc Co., Ltd. The raised cash will be used to continue the definitive drilling of the Sangdong molybdenum project, to assure mine and process equipment, as well as the feasibility and construction plans.

And there are more subsequent investments to come. Korea Zinc will acquire a 51% stake in two Woulfe's Korean subsidiaries: Sangdong Mining Corporation by investing  further $38M, and Muguk Gold Corporation by investing $1.8M more. Korea Zinc has also agreed to arrange debt funding of up to $75M to fully complete the Sangdong project.
The company's president has all the right to feel happy. "The projected investment of $40M into our subsidiaries is a significant milestone for the management team and our shareholders", he reckons.

These funds come just in time for Woulfe, which reported a net loss of 0.83M for the third quarter of 2010. With the priceless help of its partner Korea Zinc and the anticipated substantial financing, the company should have little problems to run successfully its properties. This means that the share price might go further up, but who can be absolutely sure about that.

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