Over the course of the past two weeks, the Western Sierra Resource Corporation (OTCMKTS:WSRC) stock has emerged as one of the biggest gainers from among small caps and the upward trend in the stock continued on Wednesday.
As investors continued to pile on to the stock on Wednesday, the Western Sierra stock soared by as much as 48% and took its gains over the past two weeks to a staggering 1200%. In light of such massive gains, it might be a good time for investors to look into the company’s business a bit more closely. Yesterday, the stock surged after the company announced that it completed the agreement in relation to the acquisition of 70% of the common shares in Silver State Mining Group Inc.
The acquisition has been made for a payment of $10 million and the money is going to be immediately deployed towards the preliminary development of Sage Hen Mining Claims located in the western part of Nevada. It is a major development for the company and one of the reasons for the rally in the Western Sierra stock over the past two weeks had been in anticipation of this deal.
In this regard, it is also necessary to point out that the $10 million payment has been made by the directors and officers at Western Sierra. This reflects that the management is highly confident about the prospects of this project. Additionally, the management took this step in order to ensure that they did not have to dilute the company’s stock.