Gold Exploration Co. Receives Major Strategic Investment
Source: Clive Maund
May 12, 2023 (Investorideas.com Newswire) In the wake of Teck Corp.'s investment in American Eagle Gold Corp., technical analyst Clive Maund reviews American Eagle's 6-month chart to tell you if it is a Buy.
We bought American Eagle Gold Corp. (AE:TSXV) way too early back in January and ended up with a serious paper loss as it continued to drift lower and lower on financial woes.
But the work that American Eagle has been doing on its NAK property is good and has borne fruit.
Monday morning, it got a massive vote of confidence when the news emerged that it is to receive a major strategic investment by the mighty Teck Corp., which is Canada's pre-eminent copper producer.
This news means that the company no longer has financial problems and can now move ahead boldly with its ambitious 2023 drilling program at its potent NAK property.
Small wonder then that on Monday morning's news, the stock broke out, gapping higher on strong volume out of the fine Cup and Handle base shown on our 6-month chart.
Within 10 minutes of the news appearing, an email was sent out to subscribers saying that the stock was an immediate Buy. In the event, it didn't gain much on the day from its opening price, but it doesn't matter because this news of the Teck investment in the company is a game changer and means that we can expect the stock to continue to advance to much higher levels from here, especially if gold really starts to pick up as looks likely.
Therefore, since today's move marks just the start of a major revaluation of the stock, especially if good drilling results are forthcoming later in the year, the stock remains a strong speculative Buy at the current price.
American Eagle Gold Corp.'s website.
American Eagle Gold Corp. closed at CA$0.14, $0.11 on May 8, 2023.
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