Faced with a 48% short-term drop in the value of its shares, Glimmer Resources (VSE) is scrambling to come up with ways to increase shareholder liquidity.
Trading on an anemic Vancouver market, Glimmer fell from $1.62 at the beginning of May to 85 cents at the end of June.
The decline has surprised both management and shareholders since, to the envy of many fellow juniors, Glimmer is blessed with a gold reserve of over one million tons averaging 0.34 oz. per ton at its Beatty-Hislop property in northeastern Ontario. Noranda (TSE), with a 60% interest, ranks the Glimmer project as its third most important Canadian exploration play.
“People don’t like to be in a market they can’t get out of,” explained one shareholder at the company’s annual meeting. He said Glimmer shares were too tightly held, making them a difficult trade on the open market.
President George Kent believes the Glimmer stock, based on gold in the ground, should be worth $8.50.
While a rig remains on site at Beatty-Hislop, further drilling is not expected to get under way until August or September. “The initial program will likely be a smaller 8- to 9-hole program,” Kent told shareholders.
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