On October 12th we alerted our readers to the unqiue situation unfolding at Alset Energy (ION:TSX Venture Exchange), when the stock was trading at 0.08. Today shares in ION exploded to hit an intraday high of 0.14. We don’t think the action is over yet.
What made ION very interesting to me was how they managed to renegotiate a steep mineral concession fee down from $1.8 million to under $300,000 by chopping up the large concession into several smaller ones.
The high price tag spooked the investment crowd, causing a selloff in stock. More surprisingly, the company’s CEO immediately jumped ship as he thought the concession fee’s were too high for the company to advance the project without killing the stock with dilution.
The CEO happened to be an expert in the Lithium exploration field. He gushed about how incredible the project was and how excited he was to get to work on it. So when he left, shareholders bailed.
Company founder and now CEO Stephen Stares didn’t hesitate getting on the horn with legal council and land managers in Mexico to resolve the issue; and resolve he did.
We’re awaiting further news on exactly how all of this will play out and what the final tally is going to be to maintain the conessions. It looks to be working out in the company’s (and our) favor.
Stay tuned to this story, it could be just the beginning of a very good promotion.