Why Western Copper and Gold Stock Rallied 20% in Early Trading Today

Shares of Western Copper and Gold (NYSEMKT: WRN) rose a quick 20% at the open on May 17. The miner's stock was still holding onto much of that gain at roughly 10:30 a.m. EDT, with an advance of nearly 15%. You can thank mining industry giant Rio Tinto (NYSE: RIO) for the gain.

Western Copper and Gold announced today that diversified miner Rio Tinto has made a 26.9 million Canadian dollar investment in the company. That money will go toward buying roughly 11.8 million shares of Western Copper and Gold at a price of CA$2.17 per share. The Toronto-listed shares are currently trading well above that figure, suggesting that investors see a worthwhile long-term benefit here. All in, Rio Tinto will end up owning about 8% of Western Copper and Gold. 

Image source: Getty Images.

Continue reading

Source Fool.com