Why the New Century (ASX:NCZ) share price shot up today

The New Century Resources Ltd (ASX: NCZ) share price rose today following the company announcing the completion of its retail entitlement offer. The Zinc miner announced its intention to raise money in early November. The New Century share price closed 4.55% higher on the news, reaching a price of 23 cents.

The news comes on the back of a very strong month for the company. Since the start of November the New Century share price has gained an impressive 50%.

Aside from its recent appreciation in price, it has not been a year to remember for shareholders however. with shares in the company declining by around 17% in the last year.

What does New Century do?

New Century is a Zinc miner located in Australia. The company’s primary mine is the Century mine in Queensland, which New Century is aiming to develop into one of the top 10 zinc producers in the world.

New Century acquired the mine in 2016, and has since transformed it. The upgrade was completed in August 2018, when the mine successfully entered production. 

Zinc is the fourth most consumed metal in the world after iron, aluminium and copper, according to geology.com. It can be used in cars, as an alloy and to galvanize metals among many other things.

Why is the New Century Share price rising?

The New Century share price is storming higher today after the company announced that it had completed its entitlement offer. It was announced that approximately 85% of shareholders took up their entitlements.

The company reported that it experienced strong shareholder uptake of the offer and consequentially increased the offer amount to $14.4 million. This was still short of the total $18 million worth of new shares requested.

The new shares will be issued on 1 December and are expected to commence trading on the ASX by the following day. It should be noted that the shares will rank equally with existing ordinary shares on issue.