Junior mining companies suddenly have a potential hot potato on their hands. With the collapse of the share price of RAB Capital, a major investor in dozens of small mining companies, investors are beginning to wonder if RAB may be forced to sell down many of its positions in short order if redemptions at the Hedge Fund accelerate.
EMED Mining, the mining group with copper, zinc and gold interests across eastern and western Europe, is the first to come out and announce that RAB Capital is not a shareholder in the company.
EMED also reiterated that it knew of no reason for the recent drop in its share price.
Shares in EMED climbed 7% on the reassuring update.