Avira Resources Ltd [ASX:AVW] is up a whopping 50% today. Shares spiked 100% from $0.002 to $0.004 today, following a trading halt. Yet at time of writing shares had settled down at $0.003.
Avira Resources is an exploration company focusing on tin, gold, copper, and other base and precious metals. The company’s projects include the Pyramid Gold project in the Drummond Basin.
Why is the share price up?
Avira Resources announced they are looking at starting exploration in two areas, Throssel Range and Mount Macpherson. Both projects are located in the Paterson region in Western Australia.
The company has submitted applications to grant exploration for both projects and expects Macpherson’s will be granted in the next few weeks. However, they expect Throssel Range’s exploration grant to come in during the third quarter 2020 because of delays with the COVID-19 outbreak.
The company said they’ve completed a comprehensive geological review of both areas and have identified geological features that point to the projects being prospective for multi-element base and precious metals resources that include copper, cobalt, and gold.
The company said they entered the Paterson province after Greatland Gold plc [LON:GGP] discovered Havieron, and noted that joint ventures in the area have received expenditure commitments by mining majors of over $50 million in the past year. Both Rio Tinto Ltd [ASX: RIO] and Encounter Resources Ltd [ASX:ENR] are also involved in the area.
The company is looking to raise $500,000, subject to shareholder approval, through the issue of 250,000,000 in ordinary shares at 2 cents per share. The funds will be used to fund the exploration program at the Paterson projects and also to maintain the company’s Pyramid exploration tenements in Queensland, as well as for working capital purposes.
What happens next?
There is a lot of excitement about gold as prices continue to increase. Gold prices continue to trade above the US$1,700 mark.
Investing in explorers is one way to get some exposure to gold. Another is to invest directly in the physical metal.
If you are interested in finding out more on how to invest in gold, check out Shae Russell’s step by step guide on the ‘Best Way to Buy, Sell and Store Gold’.
For The Daily Reckoning Australia