- Shares in small-cap nickel miner Giga Metals (GIGA) have spiked after a rumoured deal with EV giant Tesla hit the market late in trading last week
- Giga Metals shares began to sky-rocket last Friday, jumping more than 250 per cent before the market closed for the weekend
- The rapid share buy-up was prompted by an unverified report from Reuters, which cited a possible nickel deal between Giga Metals and US-based electric vehicle and clean energy company Tesla
- Giga Metals is currently developing the Turnagain project in British Columbia, which is touted as one of the largest undeveloped sulphide nickel deposits in the world
- However, President of Giga Metals Martin Vydra has tempered investor hopes by refusing to comment directly on the Tesla rumours and revealing that no new information from the company is forthcoming
- Giga Metals (GIGA) is currently up 7.88 per cent and is trading at C$1.78 per share
Shares in small-cap nickel miner Giga Metals (GIGA) have spiked after rumours of a deal with EV giant Tesla hit the market.
Giga Metals shares began to sky-rocket last Friday, jumping more than 250 per cent before the market closed for the weekend.
The rapid share buy-up was prompted by an unverified report from Reuters, which cited a possible nickel deal between Giga Metals and US-based electric vehicle and clean energy company Tesla.
Reuters reference three unnamed individuals close to the alleged deal as the source of the information.
CEO of Tesla, Elon Musk, sent the nickel industry into an upswing early this year after urging producers to maintain production to help meet demand for EV batteries. Elon Musk went has far as promise a “giant contract for a long period of time” to any company that could mine nickel in an efficient and environmentally sensitive way.
Elon’s prompting came of the back of a difficult year thus far for the nickel industry, with a COVID-19 induced downturn in prices causing the closure of a number of key global producers.
With that in mind, Giga Metals is currently developing the Turnagain project in British Columbia, one of the largest undeveloped sulphide nickel deposits in the world, making it a key contender in the emerging battery metals industry.
However, President of Giga Metals Martin Vydra has tempered investor hopes, refusing to comment directly on the Tesla rumours and revealing that no new information is imminent.
“What I can say is that there is no material announcement forthcoming and we will keep regulators and investors informed of any material changes that require disclosure in accordance with securities regulations,” he said.
Following tepid announcement shares in Giga Metals began to partially recoil but are still trading almost 200 per cent up on since the market closed on Thursday.
Giga Metals (GIGA) is currently up 7.88 per cent and is trading at C$1.78 per share at 11:53pm EDT.