Nimy Resources Shares Jump Nearly 21% Amid Drilling and Gallium Discovery News
Nimy Resources has clarified that no undisclosed information explains its recent share price jump, pointing instead to ongoing drilling and positive media coverage about a gallium discovery.
- Share price rose from $0.081 to $0.098 with increased trading volume
- Company confirms no undisclosed material information
- Drilling at Block 3 Prospect underway, targeting high-grade mineralisation
- Media reports highlight significant gallium intervals discovery
- Board-approved response complies with ASX continuous disclosure rules
Context of Price Movement
Nimy Resources Limited (ASX: NIM) recently experienced a notable uptick in its share price, climbing from a close of 8.1 cents on May 12 to an intra-day high of 9.8 cents on May 13, accompanied by a surge in trading volume. This sudden market activity prompted the Australian Securities Exchange (ASX) to issue a Price and Volume Query, seeking clarity on whether the company possessed any undisclosed information that might explain the trading dynamics.
Company’s Formal Response
Ongoing Exploration Activities
Instead, Nimy pointed to its recent announcement from May 1 regarding the commencement of drilling at the Block 3 Prospect in Western Australia. This drilling program aims to test for potentially high-grade and near-surface mineralisation, a prospect that naturally attracts investor interest given the potential for significant resource discoveries.
External Market Influences
Adding further context, Nimy referenced a media article from The East Coast Research highlighting the company’s discovery of some of the highest-grade gallium intervals in WA’s newest Greenstone Belt. The report also noted gallium’s favorable market outlook, driven by supply chain disruptions and increasing demand across various industries. This external coverage likely contributed to heightened market attention and trading activity.
Governance and Disclosure Assurance
The company confirmed that its response to the ASX query was authorised and approved by its board, underscoring adherence to continuous disclosure obligations. This transparency reassures investors that the share price movement is not the result of undisclosed or speculative information but rather reflects ongoing exploration progress and market sentiment.
Bottom Line?
As drilling results unfold and gallium market dynamics evolve, Nimy’s next moves will be closely watched by investors.
Questions in the middle?
- What will the upcoming drilling results at Block 3 reveal about mineralisation grades?
- How sustainable is the current market interest in gallium amid global supply challenges?
- Could further media coverage or discoveries trigger additional share price volatility?
