Nikolay Tomov
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Pershimco Resources Inc. (CVE:PRO), (PINK:RSPRF) Climbed on Panama Property Update

by Nikolay Tomov May 20, 2011
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Yesterday, the stock of Pershimco Resources Inc. (CVE:PRO), (PINK:RSPRF) climbed on the TSX Venture Exchange after the company released an update of one of its properties in Panama.

Pershimco_-_Logo.jpgPRO gained 7% to close trading at $0.61 in the end of the session. Besides, the stock marked a new yearly-high of $0.65 during the day. Even more impressive was the trading volume - it reached 1.77M shares, a record in the stock's activity on the Canadian market.

The explanation for these peaks in the shares' performance is, maybe, hidden in yesterday's company announcement. Pershimco informed investors about the progress of its 2011 exploration campaign at the Cerro Quema gold-copper project in Panama. The corporation was pleased to tell everybody about completing 3,044 metres from its diamond and Reverse Circulation drilling program on the deposit.

Pershimco_-_Chart_-_20_May_2011_New.jpgAs Pershimco announces, "two additional geochem targets have been identified" that could "significantly increase the potential of the existing LaPava mineralization". Perhaps, the good news inspired traders to support the shares for a rise on the CVE market.

There are additional positive facts and developments that could also aid the further rise in the stock price. A week ago, Pershimco was glad to close a $3M financing by way of a private placement. In the end of March, the company acquired six additional claims in the Courville Gold Project area. In late April, Pershimco formed a strategic alliance with Abitex Resources Inc. regarding the development of the mentioned Courville project in northern Quebec.

So, the company is expanding and is gainig financial strength as well. Will this be enough to support a progress in the stock's price in the future? We shall see.

The company is presently overvalued, as its current market cap of $60M is well above the net worth of the business. This might raise some doubts about the shares' capability to advance significantly in the months to come.

Besides, Pershimco has not advanced to the production phase yet and continues to incur losses. However, only the future will show whether PRO will manage to climb to new heights and set new price or trading records.

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