The mining sector has been one of the major investing themes over the past months and on Thursday; it was the McEwen Mining Inc (NYSE: MUX) stock that emerged as one of the notable gainers in the sector.
The company is involved in the exploration and production of gold and silver. Although there was no news with regards to the company’s business that could have triggered the 32% gains recorded yesterday, the rally could be related to an announcement from early January. Earlier this month, McEwen announced that it had managed to secure funding for developing the Froome deposit.
It was a significant development for the company considering the fact that the company expects that it is going to be able to hit commercial production capabilities by the fourth quarter of 2021. McEwen raised the funding through the private placement of 11,628,000 flow-through shares. By way of this move, the company managed to raise as much as $11,821,000.