Shares Pop After Gold Miner Exercises Option For Project

Shares Pop After Gold Miner Exercises Option For Project

By: Tomas Ronolski - AllPennyStocks.com News

Thursday, September 24, 2020

While the price of gold has traded away from its recently reached all-time highs, it is still at a very elevated level when looking at historical data. Rather than trying to speculate on the commodity itself, I like to focus on certain companies out there making aggressive moves to capitalize on the appreciated price of gold.

Novo Resources Corp. (TSX-Venture:NVO) made headlines today after the company announced that it exercised its option to earn a 50% interest in the Malmsbury gold project. While the transfer of interest is still subject to approval by a few parties, upon successful transfer Novo is potentially looking at a significant opportunity to expand its current operations. Quinton Hennigh, Chairman and President of Novo appears to be optimistic, stating that although in the early stages, “Malmsbury hosts one of the closest geologic analogues to the high-grade Fosterville gold deposit situated approximately 50 km to the north…. Novo believes that it now holds one of the most prospective high-grade gold projects in the Victorian gold fields.”

Traders seem to be excited by the news of the company exercising the option it acquired just two days ago, with shares trading up $.16 to $3.45/share (+4.8%) in early trade. While I try not to speculate too much on the commodity side of things in this specific feature, it is noteworthy to mention that gold prices are currently flirting with the 100-day SMA, so this could be the right time to add some Miners to your watchlist!

 


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