NV Gold (NVX.V) ended the week at C$0.265, an excellent achievement as the company started the trading week at just C$0.18 after reaching a high of C$0.31 on Thursday. There wasn’t any news so NV Gold seems to have been surfing on the waves of an improving momentum in the gold space as it’s gearing up to restart exploration activities in Nevada.
NVX is also fully cashed up as it closed an oversubscribed placement at the end of May, raising C$1.2M after issuing 8.5M units priced at C$0.14. Not only have participants in that placement already doubled their money, the half warrant with an exercise price of C$0.20 is now in the money as well. Subsequent to closing the placement, NVX entered into a ‘strategic data relationship’ with GoldSpot Discoveries (SPOT.V), which also participated in NV Gold’s placement.
As there is no warrant overhang (60 and 90 cent warrants expired unexercised in Q2) besides the C$0.20 warrants expiring in September 2021 (4.4M warrants which could bring in C$880,000 in cash if/when exercised) and the recently issued warrants with a similar strike price of C$0.20, exercisable until May 25, 2022), NVX won’t be held back in case it makes a discovery in Nevada.
Disclosure: The author has a long position in NV Gold. NVX is not a sponsor of the website.