Nikolay Tomov
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Threegold Resources Inc. (CVE:THG), (PINK:TRLDF) Jumps on Volume Record

by Nikolay Tomov Feb 22, 2011
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During Friday's session, the shares of Threegold Resources Inc. (CVE:THG), (PINK:TRLDF) made a prominent performance on the TSX Venture Exchange (CVE). They were not only in great demand by investors, but jumped significantly in value too. This happens a few days after a strategic for the company deal was announced to the public.

Threegold_-_Chart.pngFriday's hero was, beyond doubt, the volume. On that day, more than 4.8M shares changed hands. This beats 8 times the average turnover and represents a record in Threegold's trading history.

The price did not stay far behind either. At the end of the session, THG finished 14% higher than the previous close. In the future, the stock may find support at $0.29 and $0.27, whereas it can confront resistance at $0.38 and $0.39.

The surge comes a few days after Threegold announced an option agreement with Osisko Minig Corp. Under the deal, the latter may earn a maximum 70% interest in the recently acquired by the company Duverny gold project in Quebec. For that purpose, Osisko will have to spend $10M on exploration activities.

This $10M joint venture deal with Osisko is really of strategic importance for the company. It will allow Threegold to concentrate its efforts on other core assets it possesses.

The company, however, does not seem financially strong enough. This could probably have a negative impact on the future share price performance. The financial report for the third quarter of 2010 reveals somewhat discouraging results - at the end of last September, Threegold had only $714K of working capital.
Threegold_-_Logo.pngThe $1.75M financing, completed in December, has improved Threegold's cash balance, but still one question remains: is this enough? The company will perhaps need more funds to run its numerous projects adequately. Surely, additional funds will be required for the diamond drilling program on the Adanac property, planned to commence in the second quarter of 2011.

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