Shorts in McEwen Mining can be in a serious trouble on Monday. The news was released after the market closed on Friday and the addition to NYSE Arca Gold Miners Index is effective by Monday September 23rd. By the end of the trading day all managers tracking this index, including Market Vectors Gold Minex Index GDX will have to add McEwen Mining to its portfolio.
The news was already in the market as we saw a very big volatility and volume on Friday: MUX was trading between 2.82 and 2.60 with close at 2.65 on Volume of more than 27 mil shares. Friday was a down day in miners with Gold down $39.5 to $1325.6, on Monday buying pressure should propel the stock higher, depending on the Gold price action.
Interesting to note that MUX added to GDX and not to GDXJ which tracks junior miners, we are looking forward to further catalyst for this company now with Los Azules PEA coming by the end of this month. Now McEwen mining will have the very wide investment audience to listen to this developing story.
As we have written extensively before, the coming Catalyst for McEwen Mining and, particularly, for TNR Gold will be the new PEA on Los Azules Copper which is now confirmed to be released by the end of September.
"TNR Gold provides even more risky and leveraged special situation play and now depends on Rob McEwen's Midas Touch - company holds 1 million shares of McEwen Mining and have back-in right into the part of Los Azules project. Insiders are accumulating the company shares, holding the majority stake in the company and provided long term debt which has financed Shotgun Gold project 43-101 resource estimate in Alaska this year."
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