Hedge funds slash bullish wagers on gold over Trump election win
Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
Pershing Gold’s (NASDAQ:PGLC) shares climbed Tuesday after the firm announced it has raised $6 million that would help it support a propose gold mine reopening in the Nevada desert.
The stock was up almost 5.8% at 12:47 am ET and has gained more than 20% so far this year.
The emerging bullion producer said it sold 1.85 million new units — each comprising one common share and one half share warrant — priced at $3.25 per unit to the Donald Smith Value Fund.
Proceeds from the equity sale will be used to advance the Relief Canyon project as well as general working capital purposes, Pershing Gold said in the statement.
Relief Canyon comprises three open pit mines, and a plant with capacity to treat eight millions tons of ore annually. Historically the mine produced more than 110,000 ounces of gold. Currently, the area hosts an estimated 739,000 ounces of measured and indicated gold resources.
