Why did the Dateline Resources share price just pop 34% then stop?

Dateline Resources shares were on fire today before being placed in a trading halt.

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Key points

  • Dateline Resources shares jump 33.64% to 14.7 cents before being placed in a trading halt 
  • The company is planning on making an announcement regarding a capital raise 
  • The Dateline Resources shares price is expected to be lifted on or before Thursday 9 June 

The Dateline Resources Ltd (ASX: DTR) share price has been placed on ice today.

This comes after the mineral exploration company's shares rocketed 33.64% to 14.7 cents during early morning trade.

Why are Dateline Resources shares frozen?

Investors will have to wait for a pending announcement by the company before Dateline Resources shares reopen for trading.

According to the release, the company is preparing to make an announcement in relation to a capital raising.

Management advised it needs the "necessary time to plan and secure commitments from sophisticated and professional investors."

As such, the requested trading halt will remain in place until Thursday 9 June or following the release of the announcement, whichever comes first.

A possible catalyst as to why Dateline Resources shares surged earlier today could be investor excitement regarding the company's drilling results.

Yesterday, Dateline Resources received the final assay results for drill hole CM22-05 at its Colosseum gold project in California.

The highlights included a strike of 100.6 metres at 4.16g per tonne of gold from a depth of 79.24 metres.

A quick look at Dateline Resources

Australian-based mineral exploration company, Dateline Resources is focused on gold mining and exploration activities in North America.

The company wholly owns the Gold Links and Green Mountain Projects in Colorado, United States.

Furthermore, the Colosseum Gold Mine in California was acquired last year.

The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County.

So far, the asset has produced approximately 344,000 ounces of gold, with significant potential for further gold mineralisation.

Dataline Resources has also identified radiometric anomalies which could lead to rare earth mineralisation at the southern end.

About the Dateline Resources share price

Over the past 12 months, Dateline Resources shares have surged by 70% following a boom in gold prices.

Based on valuation grounds, the company has a market capitalisation of roughly $48.74 million, with approximately 443.06 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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