This is Why Pivit Exploration Inc (CNSX:PIVT) Is Trading Higher

Acquisition of additional claim blocks for a gold project is the latest catalyst pushing Pivit Exploration Inc (CNSX:PIVT) up the charts after weeks on the receiving end. Investor confidence in the stock in recent weeks has also ticked higher on the raising of additional capital, expected to facilitate the company’s exploration and drilling operations.Pivit Exploration Price AnalysisThe stock has bounced back after coming under pressure on soaring short selling pressure at the start of the year. High turnover in shares traded underscores a spike in trading activity as investors continue to react to recent developments.Pivit Exploration is up by more than 30% for the month, after bottoming out from record lows of $0.1 a share. The stock now needs to rise and stabilize above the $0.15 mark, which is seen as the next substantial resistance level. Above the resistance level, the stock should be on its way to the $0.0175 mark.On the downside, Pivit Exploration faces a critical support level at the $0.125, on any sell-offs, below which it could drop to this year’s lows of $0.1 a share.What Does Pivit Exploration Do?Pivit Exploration is an early stage mining company that acquires and explores mineral properties in British Columbia Canada. Its core objective is to locate and develop precious and base metal properties on the Lennac Lake Property. The company is currently engaged in the exploration of Copper, Molybdenum, silver, Gold and silver deposits in its mining propertiesWhy Is Pivit Exploration Spiking HigherPivit Exploration is trading higher on the acquisition of the Moosehead South Gold claims In Newfoundland province Canada. The claims that the company has acquired are close to the South end of the Sokomon Iron Corp’s Gold project, where a drill intersection of 44.96 grams per ton was recently reported.Under the terms of the agreement, Pivit Exploration is to acquire 100% interest in the Moosehead South in a cash and stock transaction. The company is to pay $25,000 in cash and issue 500,000 shares for the claims, upon approval of the transaction by the TSX Venture Exchange.

“We are pleased to have been able to secure this set of claims adjoining Sokomon, approximately 2.1 km from the recent discovery hole. Management made the decision to acquire these claims due to their proximity to this exciting discovery and to ensure our shareholders have exposure it to this potentially hot new area of interest,” said Pivit President Mike England.

Moosehead is an emerging gold exploration district in Canada which explains why investors pushed Pivit Exploration up the chart. Recent assays have already highlighted the high-grade gold potential of the emerging camp.Capital to oversee the exploration activity of the recently acquired mining claims won’t be a challenge. The company is fresh from completing an Initial public offering whereby it raised a substantial amount of money.The company issued 4.03 million shares of common stock at a price of $0.10 a share. Conversely, the company raised a total of $402,500 and now intends to use the net proceeds from the offering for working capital. Part of the funds is also to be used to carry out exploration works at the Lennac Lake Property. It awaits to be seen if the company will venture into the debt market in pursuit of additional capital to finance the newly acquired Moosehead properties.Bottom LineA bounce back from all-time lows is good news for investors. However, the big question now is whether the acquisition of additional claims is the catalysts that will push the stock back to the top after a wild bear run.Pivit Exploration is still trading in a precarious position despite the recent bounce back. It might take new significant developments for the stock to spike higher let alone move past the critical resistance level at $0.17 mark.High turnover in shares traded is good news as it indicates investors are maintaining a close watch on the company’s operations. However, for the momentum on the upside to continue, the company may have to move with speed and affirm its exploration and mining operations.While the recent dip in value presents an opportunity to buy the stock on a dip, it might be wise to wait for further confirmation before considering the stock a worthy investment for gaining exposure in Canada’s burgeoning Moosehead gold mining district.We will be updating our subscribers as soon as we know more. For the latest updates on PIVT, sign up below!Disclosure: We have no position in PIVT and have not been compensated for this article.