Why is the Dreadnought share price on ice today?

The stock may not return to trade until Monday.

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Key points

  • The Dreadnought share price has been put into a trading halt on Thursday after closing Wednesday at 14 cents 
  • The company is expected to return to trade with news of exploration results 
  • If no word is released by the company, it's expected to return to trade on Monday morning 

The Dreadnought Resources Ltd (ASX: DRE) share price has been put in the freezer this morning where it could stay until Monday.

Trading of the stock has been halted as the company prepares to drop news of exploration results to the market.

The Dreadnought share price last traded at 14 cents.

Let's take a closer look at what's going on – or not going on – with the $400 million mineral exploration company today.

Why is the Dreadnought share price in the freezer?

The Dreadnought share price is on ice on Thursday as the company gets ready to drop potentially major news of its exploration activities.

That news is expected to be released sometime between now and Monday. If it's not released by then, the stock is set to begin trading as normal on Monday morning.

The company currently has three projects, each located in Western Australia. They appear to house numerous minerals, including silver, gold, cobalt, nickel, copper, platinum group elements (PGE), and rare earth elements.

It was only yesterday that the Dreadnought share price surged 17% on news First Quantum Minerals Limited (TSE: FM) exercised its $12 million earn-in option over the Mangaroon project.

It also revealed nine drill holes at the site's Money Intrusion intersected nickel copper sulphide mineralisation. The find highlights the potential that the approximately 45 kilometre long intrusion could host multiple nickel, copper, and PGE deposits.

The last time the company was put into a trading halt was in late July. Then, it thawed on news of a $12 million capital raise. The proceeds were earmarked to go towards infill, extensional, and discovery drilling at the Mangaroon Rare Earth Project.

The Dreadnought share price has soared 250% so far this year. It's also 233% higher than it was this time last year.

For comparison, the All Ordinaries Index (ASX: XAO) has sunk 11% year to date and 9% over the last 12 months.

Motley Fool contributor Brooke Cooper 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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