The Metalstech Ltd (ASX: MTC) share price up by 10.48% to 23 cents today, following the completion of a bookbuild and sell down. The Metalstech share price has been on a tear so far this year, gaining a huge 42% just last week.
Metalstech is involved in lithium and cobalt exploration. The company completed the acquisition of its flagship Sturec Gold project in Slovakia late last year.
What caused the Metalstech share price to jump?
Metalstech announced today that industrial chemical manufacturer Wuxi Baichuan Chemicals (BBC) has divested its remaining 7,790,000 share stake in Metalstech in a $1.4 million bookbuild and sell down, which was completed at a price of 18 cents per share. BCC has been selling out of its position in Metalstech since April 2020 and, with the recent announcement, the company confirms it has eliminated the Wuxi overhang.
Commenting on the news, Metalstech chair Russel Moran said: “we are pleased that we have been able to deliver this result. The participants in the Bookbuild are gold focused investors that want to see MTC aggressively develop the Sturec Gold project.”
The Metalstech share price has also been driven higher on recent news the company is fast tracking drilling at the Sturec gold mine. Gold has been intersected at a number of the mine’s 9 drilling holes, in promising results for the company.
Tailwinds for Metalstech
Gold is viewed by many investors as a ‘safe haven’ asset and an effective portfolio hedge against economic uncertainty. The Metalstech share price is largely affected by how much gold it can mine, the gold price, and how much it costs the company to extract the gold. Thus, the Metalstech share price has been enjoying the large tailwinds arising from the strong gold price over the past few months.
What now for the Metalstech share price?
The Metalstech share price has had a stellar year to date, gaining a huge 480%. The share price has largely been driven by strong tailwinds and the successful acquisition of the Sturec gold mine. Metlastech shareholders will be hoping that the strong growth may continue, with the share price sitting at 23 cents at time of writing.