B2Gold (TSX: BTO) has upped its investment in Founders Metals (TSXV: FDR) to maintain its 5% shareholding, in response to the recent announcement of a C$30 million bought deal financing by Founders.
Through the exercise of its investor rights, B2Gold has bought an additional 484,239 common shares of Founders at a price of C$5.30 each, for approximately C$2.57 million. The stock traded at C$5.20 at the time of the announcement, adding to the 320% gain it has recorded over the past year. The Canadian gold junior has a market capitalization of approximately C$467 million.
Prior to the financing news, BMO announced that it was initiating coverage of Founders, giving it a C$7.50 target price at an outperform rating based on a conservative valuation for an assumed open pit at its flagship Antino project in Suriname.
Together with the overallotment option granted to the bought deal underwriters led by BMO…
