Will Markets Point To Higher Prices For Gold Stocks?
After having enjoyed a rally following the coronavirus epidemic in China, gold declined 1% on Wednesday. This came as investors settled down to focus on other related matters. The United States Federal Reserve’s decision with regards to the interest rates is in focus right now.
Spot gold remained flat and traded for $1565.69 yesterday, while gold futures declined by 0.3% on Wednesday. Due to the current situation with gold, it could also be a good time for investors to consider focussing on some gold stocks. Here is a quick look at two gold stocks that may be worth tracking.
Top Gold Stocks In Focus #1 Continental Gold
One of the gold stocks that could be worth considering at this point is Continental Gold (CNL – Free Report). The company made a big announcement this week that could have a investors watching closely. Continental announced that its shareholders have voted in favor of the acquisition offer from Zijin Mining of China.
The offer is worth C$1.3 billion. The company’s shareholders were urged to vote in favor of the deal by the proxy advisory firms who worked on the deal. It is a significant deal by all accounts. The company’s flagship Buritica gold project in Colombia attracted Zijin. The expected close of the deal could happen as soon as this quarter.
Top Gold Stocks In Focus #2 Gran Colombia Gold
The other gold stock that deserves attention from investors is that of Gran Colombia Gold (GCM – Free Report). It made a significant announcement on Tuesday as well. The reported that it is going to make a non-brokered private placement of its shares. It aims to raise as much as C$40 million. Gran Columbia revealed a 7.14 million unit private placement priced at C$5.60 per share.
This is right around the current share price that GCM stock trades currently. The company aims to use the proceeds for working capital and other corporate purposes. Investors could keep an eye on this stock over the coming days.
Serafino Iacono, Executive Chairman of Gran Colombia, stated: “We have ramped up our near-mine and regional exploration programs at our high-grade Segovia Operations for the coming year and we are unlocking value in our Marmato Project through the spin-out to Caldas Gold Corp., which we anticipate will be completed within the next couple of weeks.”