Buscar Company (OTC:CGLD) Hits new High After Acquisition and Reverse Merger of Eon Discovery
The mining industry has been one of the more intriguing sectors in recent months, and many of the stocks in the sector have recorded significant gains in recent times. One of the more notable mining stock gainers recently was that of Buscar Company (OTC: CGLD), which soared by as much as 150% on Friday following an announcement from the company. Moreover, the stock is up another 65% today at $0.60.
Hence, it could be worthwhile for investors to take a closer look at the company and then consider whether they want to buy the stock or not. The company is well known for having the right to operate in the Treasure Canyon Lode Mine.
To that end, Buscar had created the Eon Mining CA, and that is the entity that takes care of its Treasure Canyon interests. The mine contains many heavy veins of silver, gold, copper, PGMs, and also rare-earth metals according to a report. This past Friday, the company announced that it had finalized the acquisition of Eon Discovery, and that proved to be a massive boost for the stock.
It remains to be seen if the Buscar stock is able to add to its gains this week or not. That being said, it is almost certain that the stock is likely going to be in the radars of many investors.
After the deal goes through, Eon Discovery is going to be a fully owned subsidiary of Buscar. Buscar also announced that the CEO, CFO, and President of Eon Discovery have also taken up the same positions in the former. The President of Buscar Company, Thomas W. Heathman, stated that the company is ‘thrilled’ after having reached the agreement to acquire Eon Discovery.
He went on to add that the acquisition matches Buscar’s long term vision about the business. Considering the fact that Eon Discovery has no debts and has mineral reserves running into billions, it could help Buscar in rapidly raising its revenues in the near term. Hence, the reaction among market participants with regards to the acquisition did not come as a complete surprise.
Buscar and its team of competent officers can take care of Eon Discovery’s mining property in Plumas Country located in California. The CEOs of the two entities are expected to take part in a question and answer session towards the end of July. Earlier on in June, the company had pointed out that the acquisition of Eon Discovery is ultimately going to be beneficial to the company’s shareholders. Buscar pointed out that it is a massive project, and in addition to that, Eon is going to raise capital through non-dilutive means. On top of that, the management at Eon has stated that it has no intention to go for a reverse split in the next 18 months or at any other point in the future.
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