There were some stocks that had managed to record significant gains on Tuesday at the back of heavy interest and one of those was the Brookmount Gold Corp (OTCMKTS:BMXI) stock. It had come into significant focus yesterday and ended up with gains of as much as 49% for the day as investors piled on to it in a big way. Considering the sheer magnitude of the single-day gain, it could well be a good idea for investors to consider taking a closer look at Brookmount Gold Corp and figure out if there could be more upside in the coming days. If a company makes announcements pertaining to any kind of expansion then it may often lead to significant excitement among investors and that is what seemed to have happened with the stock on Tuesday.
Trading Data
On Tuesday, BMXI stock soared 49% to $0.0550 with 1.71 million shares, compared to its average volume of 102K shares. The stock moved within a range of $0.0350 – 0.0849 after opening trade at $0.0401.
About The Company
Brookmount Gold, which is registered in Nevada, announced yesterday that it had been successful in tying up an agreement with regards to the acquisition of more property at the Tintina Gold Belt on the United States side of Alaska. In this regard, it should be noted that in 2021 Brookmount Gold Corp had been successful in completing the acquisition of the Moosehorn property at the same Tintina Gold Belt in Yukon, Canada.
Brookmount Gold Expands North American Interests
The latest acquisition is a significant one considering the fact that it is going to be the first acquisition from Brookmount Gold Corp in the United States and will mark its expansion into the country. Hence, it was perhaps no surprise that the Brookmount Gold Corp stock managed to get a massive boost from investors yesterday. It also marks a definitive shift in the company’s investment strategy and may as well herald a new era in which Brookmount Gold Corp may look for more property acquisitions in the United States.
In addition to that, the details pertaining to the property may also have been a source of optimism for investors. It was noted that the property was made up of as many as 250 HA of high-grade gold resource and is located on McArthur Creek. In addition to that, the gold resource is located adjacent to the Moosehorn property, which is also owned by Brookmount Gold Corp. The acquisition is going to be completed through the issuance of as many as 1 million shares of the Brookmount Gold Corp common stock.
However, that is not all. In addition to that, Brookmount Gold Corp would also need to reimburse the vendor to the tune of as much as $300,000 towards the development expenses that have already been incurred by the vendor as far back as 2016. The revenues that are going to be initially generated from the gold that is sold from the property are going to be distributed in a 60-40 ratio between Brookmount Gold Corp and the vendor. At this point in time, it may be a good idea for investors to consider adding Brookmount Gold Corp to their watch lists.
Key Quote
In announcing this transaction, Nils Ollquist CEO commented: I am pleased to be able to confirm to our shareholders and followers that we are moving forward with our development plans for our North American operations with an initial, modest move into the US market. The McArthur Creek property is a natural fit for our Tintina expansion, with near-term production potential, and will be very much an integral part of our product strategy moving forward. There are additional opportunities in Tintina and other gold areas in the US that Errin will assist us in identifying over the next 12 months as we consolidate our presence in the North American market, a key component in the development of our gold production platform.
Technical Data
BMXI stock is trading below the 20-Day and 50-Day Moving averages of $0.0382 and $0.0431 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.2146. The company has a total market capitalization of $5.65 million. The stock is down 60% over the past month.
