If a stock manages to record notable gains on the back of strong trading volumes, then it may be a good time for investors to sit up and take notice. One of the stocks that managed to do so yesterday was that of Houston Natural Resources Corporation (OTC:HNRC). On Monday, the company’s stock was in prime focus and surged 30.90% on 7X its average 60-day volume.
The company, which is now known as Cunningham Natural Resources Corporation following its acquisition of Cunningham Energy LLC, made a major announcement yesterday. It announced that it had been successful in picking up a 10% stake in the firm Kharrouba Copper Company Inc. (KCC). The company also announced that there were provisions to raise its ownership stake over time. Considering the investment that was made by the company in Kharrouba Copper, the enterprise value of the latter stood at $60 million. KCC is a Canadian company that has been growing its copper mining and operations business in the Kingdom of Morocco.
The company started operations in 2017, and currently, it is working on the expansion of its operations. In this context, it ought to be noted that in the next 12 to 15 months, KCC is planning to expand its operations further, and a major drilling program is in the works, which could further boost its base of resources and reserves.
KCC also holds a considerable land position to the tune of 78,826 acres, all of which provide the company with the opportunity to expand its reserve base further. Its operations are cost-effective, and in the news release yesterday, it was noted that it is expected to generate positive cash flows. The Executive Chairman of KCC, Scott M. Hand, is a highly experienced mining executive with an experience of just a year short of half a century.