Penny Stock on Watch: North Springs Resources Corp. (NSRS)
  • Penny Stock on Watch: North Springs Resources Corp. (NSRS)
  • Stock Alert for North Springs Resources Corp. (NSRS)
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    Stock Alert for North Springs Resources Corp. (NSRS)

    North Springs Resources Corp. (NSRS) is focused on the evaluation, acquisition, exploration, and development of mineral resource properties. The Company, currently in the evaluation and acquisition phase of operations, is led by a skilled and experienced management team and independent consulting geologists with many years of experience. NSRS is committed to creating value for its shareholders by advancing its current holdings and by acquiring new properties with significant potential.

    Share Statistics (28-Dec-11)  
    Symbol NSRS
    Current price $0.37  
    52wk Range: n/a  
    Avg Vol (3m): n/a  
    Market Cap. 256.82M  
    Shares Outstanding 696.00M  

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of NSRS surged more than 54% to $0.37, a day after the Company announced it has inked a letter of intent (LOI) with DNP Mining LLP to acquire an interest in a significant gold property in Arizona.

    Shares of the Nevada-based mineral exploration company have gained 427.1% in the last five days.

    NSRS, which is required to pay $500 K for a 20% working interest, stated that it is currently conducting a property evaluation and negotiating definitive terms of the potential acquisition. The Company believes the property’s past workings and estimated reserves can add significant shareholder value and firmly establish NSRA as a growth focused mining business.

    “This is a gold project with huge potential! If we complete our acquisition of the property, we will be aggressive in moving forward with its development,” commented NSRS president Harry Lappa.  “We envision an exploration and development program that will include core drilling, a comprehensive mining plan, obtaining the necessary mining permits, and building a small pilot plant at the property.”

    Just last week, the Company announced it has completed initial field work and sampling on the North Springs Gold Project, which is located in the prestigious Mineral Ridge Mining District in Esmeralda County, Nevada.  In addition to returning some high-grade gold samples, Lappa said the initial sampling work vastly increased the Company’s knowledge of the property. As a result, the Company is attempting to add an additional 42 claims in the area surrounding NSRS’s existing claims to fully exploit the opportunity, Lappa said in a statement.

    Outlining the proposed exploration work program for the North Springs gold propertly, NSRS yesterday announced that the recommended $500 K work program will focus on several untested gold targets that include disseminated mineralization, high-grade shear zones, and feeder veins similar to those that have been open-pit mined by several companies at other Mineral Ridge gold deposits in the area.

    Lappa stated in the release that the proposed drill targets include high-grade free-visible gold mineralization exposed at surface which appears to be a stacked series of mineralized shear zones that could provide an attractive open-pit target.

    NSRS shareholders also recently welcomed the news that the Company has secured a $1 million Draw-Down Line of Credit Note to fund exploration, growth, and on-going operations.

    Source: http://finance.yahoo.com/q?s=nsrs&ql=1

    Financial Summary

    NRSR has not reported any operating revenues since its inception in 2009.

    During the three months ended October 31, 2011, the Company incurred operating expenses of $55,926 compared with $6,085 for the three months ended October 31, 2010. NSRS attributed the increase to an increase in professional fees of $10,500 relating to legal expenses incurred with respect to changes in management and due diligence with respect to acquisition of mineral properties and $4,000 for accounting and auditing fees. The Company also incurred salaries of $30,000 to the president and director of the Company, incurred $2,890 in transfer agent and filing fees relating to the stock splits and issuance of shares for the mineral property option and had an increase of $5,044 in general and administrative expense.

    For the three months ended October 31, 2011, the Company incurred a net loss of $56,841 compared to a net loss of $6,085 for the three months ended October 31, 2010. In addition to operating expenses, the Company also recorded interest expense of $915 during the three months ended October 31, 2011 relating to interest from the $40,000 notes payable received in July 2011 which is unsecured, bears interest at 10% per annum, and is due on demand.

    At October 31, 2011, the Company had cash of $16 and total assets of $60,589 compared with $nil at April 30, 2011. The increase in cash and total assets was attributed to the receipt of $40,000 from the notes payable in June and July 2011 and the fair value of the shares issued for the mineral property.

    Source: http://biz.yahoo.com/e/111219/nsrs.ob10-q.html

    Source: Reuters.com, SEC Filings.

    Comparative Analysis

    No direct competitor comparison.

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