Promoted Brazil Gold Corp. (OTC:BRZG) Attracts Gold Lovers Again

Due to a paid promotion, Brazil Gold Corp. (OTC:BRZG) gained some value back yesterday, though remained under the $1 barrier. Given the selling pressure continues to back down, the stock appears ready to follow the uptrend again.

Brazil Gold Corp. signaled possible uptrend continuation yesterday. The close at $0.90 reflected a 3.45% increase and a moderate volume rise of about 100,000 more shares traded. The bounce off the lower band from Wednesday and the preceding break through the $0.99 support level were a very strong bullish signal for investors, who did no allow the stock to get fully oversold.

Brazil Gold has been on a steep uptrend over the past two months, not without paid promotions and PR support. Yesterday, the gold exploration company paid for the forth time this year $20,000 for a one time alert, stopping the rampant fall from the beginning of the week and putting gold loving investors in a rush for the stock again.

The company comes up with a new press release each week, keeping the market aware of the progress in their mineral exploration activities. Last Tuesday, for example, investors loved to read the extensive and detailed information about the Theobroma Project, located in the southwestern Amazon region of Brazil, and especially about the huge expected profits from it, as these areas produce gold “…by only scratching the surface.”

Enormous springs as of April were not seen, as those were additionally fueled by the previous three paid promotions, that could also offset the dilution alert from the financing agreement with a private company over up to $2 million in exchange for convertible notes.

The additional funding was probably the main uptrend driver, as the latest quarter reports filed in the middle of February could not really launch a furor on the market. The good thing about the filing was that it confirmed the acquisition of the mineral claims in the Amazon Basin of Brazil, conducted middle of November last year.

Since then, however, Brazil Gold has not made any revenues from it and if one is to trust the PR, exploration actually running is the only acceptable explanation for the extremely weak financial position of Brazil Gold with $0 Cash and $0 Revenues on nearly 360% growth in liabilities.

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