One of the best performers on the ASX 200 index on Monday has been the Regis Resources Limited (ASX: RRL) share price.
In morning trade the gold miner’s shares surged an impressive 13% higher to $5.69.
Why is the Regis Resources share price rocketing higher today?
There appears to be two catalysts for Regis Resources strong gains on Monday.
The first is the escalation of the trade war between the United States and China which sent global markets into a meltdown. This led to the gold price surging higher on Friday and has seen the precious metal continuing its ascent on Monday.
At the time of writing the gold price is up a further 1.2% to US$1,555.80 an ounce according to CNBC.
This has led to strong gains being made by the likes of Newcrest Mining Limited (ASX: NCM), Northern Star Resources Ltd (ASX: NST), and Resolute Mining Limited (ASX: RSG). At the time of writing Newcrest is up 5.5%, the Northern Star share price is 10% higher, and Resolute shares are up a whopping 14.5%.
Also supporting the Regis Resources share price today has been an announcement this morning in relation to a new acquisition.
According to the release, the company has paid $20 million cash and up to $5 million in contingent payments for a large strategic tenement holding from Duketon Mining Ltd (ASX: DKM).
This acquisition means that Regis now controls 90% of the gold rights in the Duketon Greenstone Belt (DGB). This has tripled its landholding to ~3,000km squared, along strike and adjacent to its existing resources and processing plants at Moolart Well, Garden Well, and Rosemont.
Regis Managing Director, Jim Beyer, commented: “The considerable expansion of our landholding around our three mills provides a tremendous opportunity to invest further in exploration to expand the resource base and extend the mine life of our Duketon Operations. Being able to accelerate greenfields exploration in an area which has previously been underexplored and is host to major shear zones and the extension of our existing orebodies is an immediate opportunity for the Company. We are very excited to be able to apply our knowledge of the mineralisation and deposits at Duketon to work towards further exploration success.”
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.