China Natural Resources Inc (NASDAQ:CHNR) Stock Gains Momentum: Here is Why

The announcement with regards to a key acquisition can often send the shares of a company soaring and that is what seems to have happened with the China Natural Resources Inc (NASDAQ:CHNR) stock in premarket trading period today.

Yesterday, the company announced that it reached an agreement with regards to the acquisition of Precise Space Time Technology Limited in a deal worth as much as $16.1 million. The announcement has come as a major boost for the China Natural Resources stock and it is already up by as much as 40% in the premarket trading period today.

In this regard, it might be important for investors to keep in mind China Natural Resources actually got a discount of as much as 20% discount from the price that had been determined by an independent evaluation company.

The transaction is going to be closed by China Natural Resources through 120 million shares in Feishang Anthracite Resources Limited, three million shares of the restricted stock in the China Natural Resources and the rest in cash. Considering the magnitude of the gains recorded in premarket trading period, it is likely that the China Natural Resources stock is going to come into sharp focus among investors today.

Market Reaction:

On Tuesday, CHNR stock fell 6.21% at $1.36 with more than 1.35 million shares, compared to its average volume of 140k shares. The stock has moved within a range of $1.3301 – 1.4367 after opening the trade at $1.40. Over the past 52-week, the stock has been trading within a range of $1.0200 – 3.6500.