On Monday, NexGen Mining Incorporated (OTCMKTS:NXGM) was in focus after it announced that back on September 29 last year it had inked an extension pertaining to its non-binding letter of intent for the acquisition of Electrum Copper Corp in an all-stock deal.
Trading Data
On Monday, NXGM stock moved up 19.05% to $0.0250 with more than 2.50K shares, compared to its average volume of 3.56K shares. The stock moved within a range of $0.0250 – 0.0280 after opening trade at $0.0280.
NexGen Mining Announces Extension to Letter of Intent to Acquire Electrum Copper Corp.
Electrum is an exploration and development firm which owns the Candela and Don Indio Projects, both of which are situated in Mexico. As per the provisions of the extension signed by the two parties, they are going to make efforts to get into definitive agreements at any time on or before June 30 this year. That was a major new announcement and one that could be a source of optimism for investors as well.
In this context, it is important to note that back on December 7 last year, Electrum had also provided a loan to NexGen Mining for the purpose of financing operating activities and for covering the expenses that would be incurred with regards to the acquisition transaction. The loan provided by Electrum was worth $100,000 and carried an annual interest rate of 6% a year. The loan is going to compound every six months. It may be a good move for investors to keep an eye on the NexGen Mining stock at this point.
