The Woomera Mining Ltd (ASX: WML) share price jumped 28% this morning before the company requested its shares be placed in a trading halt.
As such, the mineral explorer’s shares are frozen at 32 cents apiece. It’s worth noting that Woomera shares have surged by almost 90% over the past month.
What caused the trading halt?
During the early hours of the afternoon, Woomera requested its share price be halted while it prepares an announcement.
According to the release, the company is planning to make an announcement regarding the commencement of drilling at Mt Venn.
Woomera has requested that the trading halt remains in place until Tuesday 26 April or following the release of the announcement, whichever comes first.
What drove Woomera shares up 28%?
The Woomera share price rocketed by 28% before the trading halt was called. While details remain unknown about the company’s latest drilling campaign, we take a look at its previous announcements.
Woomera holds an 80% interest in the Mt Venn Joint Venture, located 125km northeast of Laverton in the Eastern Goldfields region of Western Australia. The remaining 20% stake is held by fellow Australian-based resources company, Cazaly Resources Limited (ASX: CAZ).
Recently, the company advised that a 2,000-metre reverse circulation (RC) drilling program will kick off at Mt Venn this month. This comes as the company discovered Ni-Cu-PGE mineralisation last year.
Ni-Cu-PGE stands for a number of different minerals. The first stands for nickel (Ni), and then copper (Cu). PGE represents a ‘platinum group elements’ consisting of palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru).
Earlier this month, Woomera chair Ian Gordon commented:
Our flagship Mt Venn project has every chance of delivering a major new discovery and we look forward to getting on the ground in April in what will be a period of very exciting drilling activity for Woomera.
It appears investors are bracing for good things to come after the company delivered promising results from previous drilling campaigns.
About the Woomera share price
Since this time last year, Woomera shares travelled mostly sideways before rocketing over the past three weeks. Its shares have gained 40% for the 12-month period.
However, in 2022, Woomera shares have skyrocketed by 88% following strong price gains in the commodity markets.
Based on valuation grounds, the company has a market capitalisation of roughly $21.97 million, with approximately 686.83 million shares outstanding.
The post Why did the Woomera Mining share price surge 28% before being halted? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Woomera right now?
Before you consider Woomera, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woomera wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Top brokers name 3 ASX shares to buy today
- 2 rapidly growing ASX shares that are on sale: experts
- Betmakers share price rockets 21% as new betting venture unveiled
- Here’s why brokers love these ASX 200 mining shares
- Appen shares may be at a 5-year low, but their dividend yield has never been higher
Motley Fool contributor Aaron Teboneras 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.
from The Motley Fool Australia https://ift.tt/78s2aBU
Leave a Reply