Augusta Investments Inc., a major owner of Augusta Gold Corp (AUGG), recently purchased 20,000 additional shares. The fund owns over 22 million shares, and the latest buy increased their holdings by less than 1 percent at a cost of just over $28,500.
The fund last bought shares in August, picking up 10,000 shares for just under $11,000. The fund bought shares on over two dozen occasions in the last year. Going further back, company insiders were buyers of shares in early 2021.
Overall, insiders own 47 percent of shares.
The small cap gold exploration company is up over 50 percent in the past year, thanks to a jump in gold prices in recent weeks.
The company has lost money overall, as it has been working to acquire a project, which closed last year. It will take time to develop, extract, and sell the gold. In the meantime, shares will likely trade up and down with the price of the metal itself.
Action to take: Gold prices have been rising in recent weeks. Investors may like shares as an alternative, as they’ve fared better than the returns in the metal itself in the past year.
Traders may also like shares, given the volatility in the space. As a small player, the company has no options, but shares are priced under $1.50. That makes them cheaper than options without having to deal with the potential for expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.