El Cubo mine. Credit: Guanajuato Silver Company
Guanajuato Silver (TSXV: GSVR) is looking to raise as much as C$43 million ($31 million) in a bought deal public offering to support its Mexican mine operations. However, its shares dropped nearly 15% on the news.
The company initially announced that it planned to raise C$30 million through the sale of 60 million units priced at C$0.50 each, but later increased the offering to C$43 million (87 million units) due to strong demand.
The units each carry one common share and one-half of a common share purchase warrant, with each whole warrant exercisable at C$0.65 per share for three years.
Guanajuato Silver’s stock traded at C$0.46 with a market capitalization of C$253.7 million ($182 million) by midday Wednesday following the financing announcement, having closed the previous session at C$0.54 a share.
In its press release, the Vancouver-based company…
