The freeze on the Emerald Resources NL (ASX: EMR) share price has been extended today as the company prepares to release some potentially big news.
According to the gold producer, explorer, and developer, it is getting ready to announce a material acquisition.
Right now, the Emerald Resources share price is sitting at $1.07, where it will stay for the near future.
The Emerald Resources share price freeze continues
Today is now the fourth day the company’s stock has been frozen after it entered a trading halt on Friday last week.
As the initial trading halt was due to end today, this is likely why the company requested its stock be suspended from trade this morning.
Now, the market expects the company’s acquisition news to be announced sometime between now and Friday’s open. That is unless the company extends its freeze once more.
A little background…
In its most recent quarterly release, Emerald Resources advised it was assessing “value-adding assets for subsequent developments to create a multi-asset gold producing company”.
Emerald Resources has also recently ramped up its Okvau gold mine’s production to full capacity. Thus, it may have the time to put into a new development project.
Additionally, at the end of the September quarter, it had around $15.4 million in cash in the bank and $17.3 million worth of gold bullion at hand. The company also has access to a US$100 million acquisition and development facility.
The last time Emerald Resources broke a trading halt was back in June. It broke that halt with an update on its Okvau gold mine, including details of the project’s maiden pour.
Then, its stock’s value soared 12% before tumbling once more to finish flat with its previous close.
Right now, the Emerald Resources share price is 14,5% higher than it was this time last month. It has also gained 18.3% since the start of 2021.
The post Why is the Emerald Resources (ASX:EMR) share price still in the deep freeze today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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