This was already posted years ago. It deserves re-posting for newer investors and for those of us getting forgetfull.

http://www.prospectingjournal.com/confidence-in-providence-teck-resources-makes-splash-in-iron-range-project/

...what ultimately can’t be missed in this story is the price paid by Teck to acquire their position. Last May when the ball began to roll on the Eagle Plains/Providence JV, Providence stock was languishing at a $0.10 level. By the first week of December, when drilling updates started to pop up through favourable press releases, the stock surged to $2.70 from the $0.37 level it was at to end November. That’s a massive jump, with the lowest drop since being a dip to $1.60 prior to Christmas. Today, the stock is trading at just under $2. Thus the implication given by Teck’s payment of $4 for a $2 stock proves that Teck has seen enough data to warrant the confidence us outsiders only could previously speculate up to this point. Thus, through Teck’s indicative showing of their hand, there is still confidence in the surging value remaining upon Providence’s journey ahead."

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This seems like a Cinderella story, but look into it further and you will see the total investment by Teck was only $4 million (as a private placement). Very different than a several hundred million buyout and 3 billion CAPEX build of the mine.

In 2011, 4 million spent by Teck was fairly insignificant. They enjoyed a much better financial position, outlook and SP in 2011 vs today. Yes, they overpayed on this micro-investment but then walked away.

Today, Providence is trading at 5 cents (market cap of $1.1 million).

Where did Teck's confidence go? Teck showed their hand after all? What happened to the project?

It seems like the project is not a going concern anymore considering the SP.

I think this story doesn't convey what you intended for us "forgetful" ones.

The article may look on the surface that it proves a point, but dig a little deeper and poof its gone?

Nice seeing the SP climb today.

Last night Mudguy posted he thought the SP was ready for a run and he was going to buy a trading position today. I'm not saying this is why it went up, but if he saw something looking good, others may have came to the same conclusion.