Atocha Resources Inc (CVE:ATT) stock price jumped up after the company announced to have acquired additional graphite properties in Quebec.
ATT gained 14.3% on Wednesday under a trading volume of 3 million, which was more than ten times heavier than the daily average of 289 thousand. It was also the heaviest trading volume recorded over the past year.
The price still remained near its multi-year lows. ATT is still stuck in the recently established price channel between 3 and 5 cents per share. The current price rally might also encounter additional resistance at a 200-day moving average, which is now just around the upper limit of the price channel.
Traders got more excited after Atocha stated in a press release on Wednesday, March 21, that the company has purchased 25 claims in Grenville, Quebec. The properties were described as holding excellent graphite potential.
Nearly 1.5 ha of land will be purchased by issuing 2.6 million common shares and paying $15 thousand in cash. No royalties or exploration work commitments come with the agreement.
The market reacted in a comparatively conservative manner. The recent price push was in line with the general volatility. It also didn’t exhibit significant enough liquidity to provide the precedent for further price rise.
