Gold explorer, Australian Gold Investments Limited (AGV) rose 5% on its debut on the Australian stock exchange after trading flat for most of the day.
The Sydney-based business closed at 21 cents, with more than 675,000 shares changing hands.
AGV raised $5 million at 20 cents per share through the initial public offering.
The company has two major projects in Western Australia, the Broads Dam Gold Project and the Pilbara Gold Project.
Broads Dam is located in the Yilgarn Craton, and is considered highly prospective over a strike length of 14km, within a ‘major productive gold mineralised corridor'.
Pilbara Gold Project is located in the Pilbara Craton where AGV holds tenement rights covering 200km².
Whilst the projects are considered speculative at this stage, the company's share price is expected to benefit from the surging gold price.
Gold has experienced a meteoric rise over the past year – rising 32% in 2007 – boosted by the falling US dollar, the growing uncertainty in financial markets from the credit crisis, the slowing US economy and rising prices for oil and other commodities.
Spot gold hit a record $US898.00 an ounce on Friday, but later trimmed gains to $US896.40/$US897.10 in New York compared with $US889.90/US890.60 on Thursday.
