NovaGold Resources, Inc. (AMEX:NG) Attacks the Top With A New Gold Project On the List
By StockFrontRunners on Apr 15, 2010 with Comments 146
Increasing by 0.39% and closing at $7.78, NovaGold still captures investor interest and stays at this year’s highest levels. The intensive trading caused 1.4 million shares to change hands and the company marked an impressive market capitalization of $1.47 billion. Promoters were on board again to help the stock on its way towards the 52 week peek of $7.90 per share.
The promotion yesterday, which was worth the usual amount of $25,000, paid also for some former promoter efforts. Only February was left without any promotion and NovaGold must have noticed the start of a slight downtrend. The flight of the stock began again after the March promotion and closed 9.21% up on the day following. It needed only a couple of days to surpass the $7.00 margin.
The additional $175 million of equity raised in March through several well-known gold sector investment funds increasing their positions and purchasing 31.8 million newly issued shares, have made NovaGold’s early exploration stage projects seem trustworthy.[BANNER]
Good news for the market was also the newly purchased project, hosting a high-grade copper-zinc-gold-silver deposit. Of course, the money for the investment came from the new 931,098 shares issued.
Investors seem to have put aside all dilution risks and have faith in the good chance of NovaGold’s portfolio of mining projects, including two of the world’s largest undeveloped gold and copper-gold reserves, to make future spectacular rises. The market is betting on potential, since according to the last quarter results filed this week, the business is still far away from generating enough working capital to finance operations.
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Filed Under: Press Releases
