TAON released news today before the bell. The stock quickly moved out of the gates and hit its 50 day moving average before pulling back into the afternoon. I think the $.0034 figure will be an important one if TAON decides to move higher from here. The stock closed at $.0025 on above average volume.
TAON has traded down from around $.015 earlier this year and looks ready for a reversal. Today's news could help bolster the stock going forward.
We saw a delayed reaction to news like what i think will happen with TAON, with the stock UYMG. Some of you may recall when I brought UYMG to the blog at $.0025 and called for a rebound in shares, the stock just recently hit over $.025 a share. The ultimate major price move didn't happen over night, or even over just a few days. That is what I think will happen with TAON, of course nothing in this market is ever 100% sure. The stock could continue down to $.0001, anything is possible.
MEDELLIN, COLOMBIA, Jul 06, 2011 (MARKETWIRE via COMTEX) -- Tao Minerals Ltd. (TAO) (OTCQB:TAON) is pleased to announce the signing of a Letter of Intent (LOI) to acquire the Las Aquadas property from Bullet Holding Corp of Medellin, Colombia. The Las Aquadas property is located in the Caldas Dept and approximately 120 kilometers south east of Medellin, Colombia.
The due diligence period for each of the parties is to be completed by September 30, 2011 and all terms and conditions concerning this proposed transaction will be set forth in a definitive agreement that will be subject to the approval of the parties.
The key point issues of the Proposed Transaction structure are as follows:
- Listing on Frankfurt Exchange - Tao will undertake its best efforts within 90 days to seek a listing on the Frankfurt Exchange consistent with any and all listing requirements.
- Vend in of Bullet Property - Bullet will transfer its interest in the Las Aquadas property with a minimum valuation of
US$ 10,000,000 in exchange for a minimum of 60 % of the issued and outstanding shares warrants and/or debentures of Tao on a fully diluted basis conditioned upon the completion of the Financing.
- Financing - Tao completing a financing for gross proceeds of at least US$ 10,000,000
- Senior Officer - James M. Sikora will agree to serve as the President of Tao on a full time basis for a period of at least two years from Closing.
- Board Representation - the board of directors of Tao at closing shall be compromised of seven people, three nominees of Tao, three nominees of Bullet and the seventh nominee being jointly agreed upon by Tao and Bullet.
- Closing - The Closing shall occur no later than September 30, 2011
Tao president, James A. Sikora stated that Tao is very pleased to have executed this LOI to acquire an excellent and key project in such a strategic gold mining district of Colombia.
Tao Minerals Ltd. is a mining exploration and development company formed to acquire, develop, and exploit natural resource properties focusing primarily on the rich, yet highly underdeveloped gold deposits of Colombia doing so in a socially and environmentally responsible manner. As a corporation, Tao has firmly established itself in Colombia over the past five years, becoming fully adept with the legal and political processes required and hiring highly qualified personnel in the geological, legal and security professions. Arriving early to the boom in the expansion of natural resource development in Colombia has enabled Tao to firmly establish itself in Colombia.
Contacts:
Tao Minerals Ltd.
James A. Sikora
President & CEO
877-331-8777
Posts
No comments:
Post a Comment