By: Dylan Sikes - AllPennyStocks.com News

Friday, April 25, 2014

Executives of companies from nanocaps to majors are faced with tough decisions every day. Tiny companies, especially miners, face a grand challenge of raising capital that is more difficult in the past few years than ever before. When they do get some cash, what to do with it to most efficiently advance projects while staring down the barrel at convertible notes is surely not an easy one to make. With the chance to grab a wash plant and Cat loader through a lease purchase in a prolific diamond region, management at Sunergy, Inc. (OTCQB:SNEY), chose the assets over the convertibles. Given that the chance to get the equipment may not be there and the limited number of shares that will hit the market, relative to the total number SNEY shares outstanding, it was probably the right decision.

The diversified Scottsdale, Arizona-based company has transitioned from a pure exploration play into a producer recently, operating two diamond and gold dredges in Sierra Leone and two more in Liberia. Outside the mining space, Sunergy has its hands in several solar projects internationally, amongst other business ventures.

The company said on Friday that its Liberian dredge operations, consisting of two dredges and two crews that started only a few weeks ago, are now recovering diamonds and gold. Results will be released shortly upon grading of stones. Sunergy has another dredge on standby located between Liberia and Sierra Leone, waiting to be deployed to whichever project is determined needs it more to generate cash flow. In the area, the company has now received clearance for 3 Class B Prospecting Licenses in Borni County that are contiguous to Sunergy’s current dredging operations in Borni Hills. The new licenses were for land formerly mined by an international diamond company before the conflict in Liberia halted operations for several companies.

The ability to quickly advance project development in Liberia – in addition to moving ahead in Sierra Leone – was the motivation to not use $32,500 in cash to pay a note to Asher Enterprises. As such, Asher converted the last part of a note three days ago, receiving 4.321 million shares that are now going to be sold into the market. This is a drop in the bucket compared to the 2.16 billion shares that Sunergy has outstanding.

To that point, Sunergy is optimistic that once those shares are absorbed by the market, the share price will continue to climb higher. Trading 16.4 million shares in a day (as it has already on Friday), it won’t take long for those shares to be part of the mix.

According to Garrett Hale, president and chief executive of Sunergy, “management believes that there is not a lot of resistance to achieve our goal to be at a penny by May 1, 2014, in compliance with the SEC rule changes to maintain our fully reporting and compliant listing on the OTCQB."

Shareholders that have jumped into Sunergy in 2014 have reaped some lofty rewards already. Shares sunk as low as $0.0007 late in January before going on a tear to hit as high as $0.0077 earlier this month. Shares have consolidated from those highs, printing $0.006 in Friday action for gains of 3.5 percent. Question now is: Will management meet their goal of another 67 percent rise in value to make it to the penny mark in the next three trading days. That’s a mighty lofty goal and a bold call by Mr. Hale. Proper due diligence is, as always, encouraged.

Copyright © 2014 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.