Eurasia Mining plc (LON: EUA) edged higher after revealing that it had secured another license at West Kytlim, which already has mining operations.
The gold and platinum group metals miner reported that it had been awarded the Flanks Licenses, next to its current mining license.
Furthermore, the new license area extends beyond Eurasia Mining’s initial exploration license owned by the company and its previous partner Anglo American Platinum Ltd.
Christian Schaffalitzky, Eurasia Mining’s Chairman, said: “The directors are delighted that we continue expanding our presence in the Urals beyond our current mining license area and Typil exploration license area, including to the areas known to us through the work done within our former 15-year joint venture with Anglo American Platinum,”
Adding:
“Once again, we have demonstrated the capacity of our team to successfully obtain licenses and implement our strategy.”
Eurasia Mining intends to use the new license area to increase the resources available within its larger West Kytlim mine, where it has launched two new plants this year. The miner produces palladium, platinum, rhodium, iridium and gold at West Kytlim.
The company has applied for the Flanks license in 2019 and was confident that it would be awarded the license.
Investors cheered the move initially, as evidenced by the company’s initial price gains, but the gains were short-lived as the share price later headed into negative territory.
From a technical analysis perspective, Eurasia Mining shares pulled back at a crucial resistance level that has been in place since March this year, which explains the decline.
Investors should monitor the PGM miner’s share price to see if it can break above the resistance zone, ushering in a new rally phase. Meanwhile, I wouldn’t rush to buy Eursai Mining shares at current prices since we could be getting a deeper pullback soon.
I would use such a pullback to time my next entry. I would also use a breakout above the resistance zone as a potential trade entry if prices stay above the level for a few days.
*This is not investment advice. Always do your due diligence before making investment decisions.
Eurasia Mining share price.
Eurasia Mining share price edged 1.82% higher to trade at 30.80p, rising from Monday’s closing price of 30.25p.
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