It has been a great day to be a shareholder of Red 5 Limited (ASX: RED).
At the time of writing, this ASX gold share is up a sizeable 25% to 27.5 cents.
This leaves it trading within a whisker of a 52-week high.
Image source: Getty Images
Why is this ASX gold share racing higher?
Investors have been buying Red 5 shares this morning in response to a major block trade before the market open.
According to the course of sales today, someone picked up 372,897,512 units in the ASX gold share for an 18.2% premium of 26 cents per share this morning.
This equates to a total consideration of approximately $96.95 million.
Who is buying?
According to the AFR, stockbrokers at Petra Capital were behind the purchase of an almost 11% stake in the West Australian gold producer. However, the client that Petra Capital was buying the stake for has not been named.
The media outlet is suggesting that Genesis Minerals Ltd (ASX: GMD) could be the company behind the purchase. Particularly given how it has been consolidating gold operations in the region following the acquisitions of Dacian Gold Ltd (ASX: DCN) and the Gwalia mine from St Barbara Ltd (ASX: SBM).
For now, though, this is all speculation. But thankfully we won't have to wait long to find out who is behind the purchase. An initial substantial shareholder notice will need to be filed this week.
However, one key thing we may not have an answer for immediately is why this investor is snapping up the ASX gold share. Could it be for a full takeover down the line? Time will ultimately tell.
