Boston, MA 03/14/2014 (wallstreetpr) – Primero Mining Corp (NYSE:PPP) was trading up big in the last session on the back of attractive news from the company. The recent gains in the stock have managed to place it above the volatile price of $6.08 – $6.91 in the last one month time frame.
Shares of the precious metal producer rose 11.42 percent to $7.51 Thursday. The double-digit gain came on solid volume with more shares than in normal session changing hands. The shares were traded in the range of $6.76 – $7.67, thus establishing a new 52-week high price.
Meeting production threshold
Primero Mining Corp (NYSE:PPP) announced that it has been able to meet the annual threshold for silver production at the San Dimas mine according to the agreement it entered with Silver Wheaton Corp. (USA) (NYSE:SLW). It therefore means that the company will be able to sell at spot price the 50 percent of the silver produced at the mine until August. This comes a good deal for the company and investors have applauded development.
Secondary offering
Primero Mining Corp (NYSE:PPP) and Goldcorp Inc are engaging underwriters to sell all of the more than 31 million common stock shares of Primero Mining Corp (NYSE:PPP) that are currently held by Goldcorp. Each share in the offering has been priced at C$7.20. The Goldcorp shares in Primero represent about 19.8 percent of the company’s outstanding common shares.
After the transaction, Goldcorp will cease its stockholder position in Primero Mining Corp (NYSE:PPP). Also, Goldcorp will meet all the expenses related to the offering. The transaction is expected to close on March 26, but as usual, such will be subject to customary closing conditions.
Bottom line
Primero Mining Corp (NYSE:PPP) shares have been full of gains of late. Yet the gains are coming when analysts have also been adjusting their observation on the stock towards the negative end of things. This simply suggests that there may be trouble down the road. At least if the analysts are correct. So the best thing is to keep an eye here.
