It was a tough day in the markets for Brookmount Gold Corp (OTCMKTS:BMXI) investors as the company’s stock suffered from an almighty selloff and went down by as much as 24% as a consequence.
On Tuesday, BMXI stock moved down 24.41% to $0.0831 with more than 3.69 million shares, compared to its average volume of 866.45K shares. The stock moved within a range of $0.0711 – 0.1200 after opening trade at $0.1200.
Brookmount Gold Corp, Continues Expansion of its North American Platform with its Third Acquisition.
In this situation, it could be a good idea for investors to take a look at the announcement that was made by the company yesterday. Brookmount Gold Corp announced on Tuesday that it had gone into an agreement by way of which it would complete the acquisition of a gold project situated not far from Atlin. It is located in the area in British Columbia, Canada that is known as the Atlin Gold Belt.
Although the market reacted negatively to the news, it may still be a good idea to consider taking a bit of a look into the property that the company could potentially acquire. It spans an area of as much as 100 hectares and has a record of production.
More importantly, it was also announced that there is considerable prospects with regard to future development as well. In fact, some of the geological analyses that have been conducted on the property have also revealed a range of promising vein structures.
In announcing this development, CEO Nils Ollquist said: “The Atlin project represents an acquisition perfectly complementary with our other 2 projects in North America, in that it provides us with a hard rock mining operation to integrate with our alluvial based projects of Moosehorn (Canada) and McArthur Creek (USA). The ore grades available from hard rock sites such as Atlin are typically significantly higher than alluvial structure-based operations. Most importantly, our expansion initiatives in North America are increasing the value of The Company’s gold platform and cementing its future as a diversified global producer of gold.”
BMXI stock is below the 20-Day and 50-Day Moving averages of $0.1662 and $0.0941 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.1508. The company has a total market capitalization of $249K. The stock is up 70% over the past month.