Stock Alert for North Springs Resources Corp. (NSRS)
  • Penny Stock on Watch: North Springs Resources Corp. (NSRS)
  • Penny Stock on Watch: 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 (18-Jan-12)
    Symbol NSRS
    Current price $0.81
    52wk Range: $0.01-$0.84
    Avg Vol (1m): 12.00M
    Market Cap. 560.28M
    Shares Outstanding 696.00M

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    North Springs Resources Corp. (NSRS) set a fresh high of $0.84 Wednesday, a day after it provided an additional update regarding the recently announced Letter of Intent (LOI) with Discovery Gold Ghana Ltd. to acquire a 10% interest in the Edum Banso Gold Project, a high-potential gold exploration property in Ghana, Africa. The stock closed the session at $0.81, extending Tuesday’s gains of 13%, with strong volume of 20.47 million shares traded.

    NSRS shares have gained 76.9% in the last five days; 1,050.0% in the last month; and 7,950.0% in the last six months.

    NSRS president Harry Lappa commented in the press release: “Edum Banso Gold Project is located exactly where you’d expect to find a huge gold deposit; right next door to a producing gold mine and surrounded by more than 100 million ounces of gold. Successful exploration work conducted on the ground and from the air is telling us that are we are potentially onto something very special at Edum Banso and we hope to prove that over the coming months.”

    As reported, the Edum Banso concession covers 20.60 km2 (5,100 acres) located about 35 km (21 miles) northwest of city of Takoradi in the southeastern portion of Ghana’s historic Ashanti Gold Belt.

    Previous exploration conducted on the Edum Banso concession by Newmont Gold and others included extensive geophysical (aeromagnetic) interpretation, soil and stream sediment sampling (5,758 samples), trenching (319 m total – 214 channel samples), auger drilling (252 holes), and rock chips (81 samples).

    The LOI calls for NSRS to provide a total of $1.25 million in funding to Discovery Gold.  Pursuant to the agreement, NSRS will advance $150K to Discovery Gold within 10 days and make an additional payment of $100K within 30 days. The Company will  fund a multi-phase $1 million work commitment in 2012.

    The deal remains subject to, among other things, successful completion of due diligence and all the parties entering into a definitive agreement.

    Source: http://finance.yahoo.com/news/North-Springs-Resources-iw-2017310321.html?x=0

    Financial Summary

    NSRS has not generated any revenue since its inception in 2009.

    The Company incurred operating expenses of $55.93K during the three months ended October 31, 2011, compared with $6.09K in the comparable quarter of the prior year. NSRS attributed the increase to an increase in professional fees of $10.50K relating to legal expenses incurred with respect to changes in management and due diligence with respect to acquisition of mineral properties and $4K for accounting and auditing fees. The Company also incurred salaries of $30.00K to the president and director of the Company, incurred $2.89K 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 $5.04K in general and administrative expense.

    NSRS realized a net loss of $56.84K for the quarter, up from a net loss of $6.09K in the prior-year period.

    On top of operating expenses, the Company recorded interest expense of $915 during the period relating to interest from the $40.00K notes payable received in July 2011, which is unsecured, bears interest at 10% per annum, and is due on demand.

    NSRS had cash of $16 and total assets of $60.59 K at October 31, 2011, compared with $nil at April 30, 2011. The increase in cash and total assets was attributed to the receipt of $40 K 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

    Comparative Analysis

    No direct competitor comparison.

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