Following a major announcement from NexGen Mining Incorporated (OTCMKTS:NXGM) on Thursday, the company’s stock emerged as one of the biggest gainers in the markets and ended the day with staggering gains of as much as 56%.
On Thursday, NXGM stock jumped 56.25% at $0.0625 with more than 188.76K shares, compared to its average volume of 7.41K shares. The stock has moved within a range of $0.0250 – 0.1500 after opening the trade at $0.0600.
Announces Letter of Intent to Acquire Electrum Copper Corp.
In light of such gains, it might be imperative for investors to take a closer look at the developments. The company announced yesterday that it inked a letter of intent of a non-binding nature with regards to the acquisition of Electrum Copper Corp. The company is going to complete the acquisition by buying up the common shares in Electrum.
The announcement came as a source of considerable optimism for market participants and the NexGen Mining stock rallied strongly as a consequence. Electrum is involved in the development and exploration space and is best known for owning the projects in Don Indio and Candela. Both of those projects are located in Mexico.
In addition to that, NexGen also released information with regards to some of the things which will need to be taken care of before the transaction is completed. The common stock must be listed on the OTCQX Best Market, cancellation of equity incentives and the completion of one for four reverse stock split.
Marc J. Andrews, the Company’s President and CEO, commented, “We believe that Electrum brings high quality projects, a strong leadership team with great vision, and project and geographic diversification that will enhance our portfolio of projects and that we believe will enhance our ability to implement our business plan.”