A fund managed by Merk Investments has acquired a substantial stake in Australian gold, copper, and critical minerals explorer Nexus Minerals (ASX: NXM).
The investment was made through ASA Gold and Precious Metals, a closed-end fund focused on precious metals and mining companies. By mandate, ASA Gold allocates at least 80% of its portfolio to precious metals explorers and producers, physical bullion, or exchange-traded funds.
ASA Gold purchased 36 million shares in Nexus Minerals for $2.52 million in cash, representing a 5.96% ownership stake in the company.
In March, Merk Investments, based in California, reported that its assets under management have surpassed US$2 billion (approximately A$3.1 billion), driven by growing demand for physical gold and mining companies specializing in precious metals.
Gold prices have recently reached record highs, with the metal trading around US$3,140 an ounce at the time of writing, fueling investor interest in the safe-haven asset.
Merk’s Chief Investment Officer, Axel Merk, attributed the heightened focus on gold and gold miners to fundamental changes in the global financial system, which may pose a threat to the US dollar’s status as the world’s primary reserve currency.
“As capital markets adjust to these dynamics, investors appear to seek exposure to gold not just as a hedge, but as a strategic asset,” he said.
Nexus Minerals holds a diverse portfolio including gold projects in Western Australia, gold-copper and critical minerals assets in New South Wales, and porphyry copper-gold prospects in Victoria.
The junior explorer, with a market capitalisation of $44.1 million, recently secured firm commitments for an $8.1 million institutional placement in late April. The capital raise is intended to accelerate drilling activities at its Wallbrook Gold Project in Western Australia.
Following this placement, Nexus’ cash reserves rose to over $12 million.
Previous drilling at Wallbrook uncovered high-grade near-surface gold mineralisation and led to the discovery of two new gold zones.
