It’s a brand new week, giving mining penny stocks that plunged last week a chance to reinvent themselves. One of these stocks is Cardero Resources (TSXV:CDU) (OTC:CDYDF), which plunged more than 10% on Friday, despite announcing a private placement the day before.
Mining Penny Stocks: Cardero Resources
There’s been a lot going on in the mining industry lately. Lithium Chile (TSXV:LITH) just expressed excitement over its latest Ollague drill results, while Cardero Resources announced a private placement on Thursday. But for the latter, the announcement didn’t seem to do the Canadian company’s stock any good.
Four days ago, Cardero Resources disclosed a non-brokered private placement. It is for up to 2,142,857 units of the Company, valued at a price of $0.14 per unit. Here’s why this was a positive announcement: all of the proceeds will be used to further Cardero’s Zonia copper project, which resides in Arizona.
The market didn’t seem to take the announcement as a good thing. Or maybe it did. Maybe Friday was just one of those days; it’s been known to happen to penny stocks. Either way, the stock plunged twenty-four hours later, hitting double-digits at one point in the afternoon.
The Cardero Resouces Stock
Late Friday, on the OTC market, Cardero Resouces was trading at $0.09, which means the stock was down 11.55%. As I said, penny stocks are volatile little guys, but a drop of more than 10% is pretty high, even for them.
The Takeaway
At the time of writing, the markets have yet to open. However, I will be, likely along with others interested in the mining market, watching the stock to see the direction it takes today.
Now I have two questions for the reader: first, what do you think will happen to Cardero Resources today? And second: what do you think of the recently announced Lithium Chile drilling results?
Let us know in the comments below and check back tomorrow for more penny stock news!
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