Australia: Penny stock surges 8,700%, turns $11K into $1M
What's the story
Kaili Resources, an Australian mining company dealing with rare earths, witnessed a jaw-dropping 8,733% surge in its share price on Monday. The company's shares hit a high of $3.18 during the trading session, compared to its previous closing price of $0.36. The spike was triggered by the announcement of drilling approvals for rare earth metals in South Australia on August 15.
Trading suspension
Trading halt
The extraordinary surge in Kaili Resources' share price led to a trading halt at the company's request. The Australian Securities Exchange (ASX) accepted the request, halting trading until Kaili responds to ASX queries or until trading resumes on August 20. This move highlights the current market interest in rare earth minerals and how major announcements can significantly impact stock prices within a short period of time.
Project details
Drilling approvals for rare earths
The approved drilling program by Kaili Resources is in three tenements at Limestone Coast, targeting the Loxton/Parilla sands for rare earth elements. The company believes this announcement may have attracted investors' attention to KLR due to the high demand for critical minerals investment.