Amarok Resources, Inc. (OTC:AMOK) Promoters Start Losing the Game

The massive promotional campaign for Amarok Resources, Inc. (OTC:AMOK) continued on Friday with moderate success. But the market has already heard and seen enough of promotions and PR as their interest appears to be decreasing.

Three paid promotions for Amarok for a total cost of $60,000 on Friday recorded disappointing results for the company’s stock. The rise was quite moderate with 1.67% to a close of $1.83, but the more annoying news is that investors’ interest seems to start fading away. Trading volume dropped significantly to only around 166,000 shares and reached the lowest level since the stock is traded.

Promotions and press releases about new gold mining properties have permanently attacked the market over the last couple of months and have kept the price at the current levels. But PR impact seems already completely exploited, as a previous promotion from last Tuesday led only to a 6.2% increase and the volume started falling gradually. An accompanying press release was also not missing, and it provided gold rushers with good news, saying the company has ensured $1,000,000 in a private placement in exchange for 1,000,000 shares of common stock and 1,000,000 shares purchase warrants.

The amount will not be enough to cover the company’s obligations on its so far one and only officially confirmed ongoing project. According to the exploration agreement over the lease and the option to purchase a 100% interest in 29 unpatented lode mining claims located in Nevada, Amarok has to pay $5.5 in funding to cover the mining expenses, $1.5 million from which up to the end of this year.

But since the 60:1 stock split in February, dilution risks are the last thing troubling Amarok current and potential shareholders. No revenues, no assets, no operating activities and no investments are to be seen on Amarok’s financials and the main activity of the still in exploration-stage company since inception has been to collect money from hopeful investors and to promote a non-existent business.

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