Hedge funds’ bullish bets on gold jump to four-year high
Hedge funds and other large speculators boosted their net-long position in gold.
Alecto Minerals (LON:ALO), an exploration and development company working in Mauritania and Ethiopia, was up sharply on Wednesday after it announced a joint venture and financing with Centamin (LON:CEY).
Alecto and Centamin will evaluate and potentially pursue together opportunities in the Federal Democratic Republic of Ethiopia. Centamin will also invest £250,000 (US$377,875) in Alecto by way of a share subscription.
Alecto climbed 33.16% to GBX1.26 (US$1.90). Centamin was just up 0.90% to GBX38.91 (US$58.81).
“This is a potentially transformative deal for Alecto that endorses the work we have completed and the quality of our portfolio in Ethiopia,” said Alecto Minerals Managing Director Damian Conboy.
“If the JV Agreement is signed, with Centamin’s investment and technical input, we believe we can rapidly advance the Wayu Boda gold project, and potentially our Aysid Metekel Project, to create value for our shareholders. We look forward to working with Centamin to explore our land package in Ethiopia and potentially develop further interesting projects.”
Early this year Centamin has faced some problems getting its gold out of Egypt due to a government dispute over permitting.
