Insights

Why the Nexus Minerals (ASX:NXM) share price is rocketing 22% to an all-time high today

Investors will be jumping for joy today…
The post Why the Nexus Minerals (ASX:NXM) share price is rocketing 22% to an all-time high today appeared first on The Motley Fool Australia. –

The Nexus Minerals Ltd (ASX: NXM) share price has come out of a trading halt on Monday to reach a record high. This comes after the gold explorer announced an update on its recent capital raise.

At the time of writing, Nexus shares are up a sizeable 22% to an all-time high of 61 cents. In the past week alone, its shares have now risen more than 32%.

Nexus completes placement

Investors are buying up Nexus shares as the company seeks to progress its exploration activities at the Wallbrook Gold Project.

According to its announcement, Nexus said it has received firm commitments for its institutional placement to raise $19 million before costs. The company highlighted that it had strong support from both domestic and offshore institutional investors.

The offer will see approximately 41.3 million new ordinary shares issued at a price of 46 cents apiece. This represents an 8% discount to the last closing price of 50 cents on 10 November (before going into a trading halt).

The company will primarily use the proceeds to fund drilling activities at the Crusader-Templar prospect and other regional exploration activities.

In particular, the funds will be allocated to the following:

Crusader-Templar Prospect reverse circulation and diamond drill programs;
Solomon Prospect reverse circulation and diamond drill programs;
Regional target generation and aircore, reverse circulation and diamond drill programs;
Regional geophysical surveys; and
General working capital.

Settlement of the new shares is expected to occur on Monday 22 November.

Nexus managing director Andy Tudor commented:

The proceeds from the placement will allow Nexus to expedite and ramp-up exploration programs at the Wallbrook Gold Project, where the company has been having exploration success at the Crusader-Templar Prospect in recent drill programs. To have achieved such a strong level of institutional and sophisticated investor support for the placement was very encouraging and a strong endorsement of the company’s endeavours.

Nexus Minerals share price summary

Adding to today’s gains, Nexus shares have pushed around 250% higher in the past 12 months. However, when looking at year-to-date, the company’s shares are hovering around upwards of 370%.

Based on valuation grounds, Nexus presides a market capitalisation of around $150.46 million, with almost 247 million shares outstanding.

The post Why the Nexus Minerals (ASX:NXM) share price is rocketing 22% to an all-time high today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nexus right now?

Before you consider Nexus, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nexus wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why Cardno, Incitec Pivot, Mesoblast, and WiseTech are storming higher

Iron ore prices are flat, so why is the Fortescue (ASX:FMG) share price jumping higher today?

Could the Rio Tinto (ASX:RIO) share price be set to leap 25%?

Why is the Minerals 260 (ASX:MI6) share price rocketing 21% today?

This young stock picker bought Afterpay (ASX:APT) at $20. Here’s which ASX shares she likes now

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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!