Minefinders Finds Cash, After Reaching 52 Week High
updated Thursday, September 17, 2:46 PMPrecious metals mining and exploration company Minefinders (MFN) found buyers for an offering of 6.2 million shares. Underwriters BMO Capital Markets (a unit of Bank of Montreal (BMO)) and Scotia Capital (a unit of The Bank of Nova Scotia (BNS)) agreed to buy the shares on a bought deal basis for 10.65 Canadian dollars.
The deal will give Minefinders gross proceeds of over 66 million Canadian dollars, which the company said will be used for debt repayment, as well as for continued development and mill construction of its Dolores gold and silver mine in Mexico.
Shares of Minefinders were trading at a 52 week high before the offering announcement, helped higher by a recent surge in gold prices. Following the announcement Thursday morning, shares were down a little over 6% in Toronto to trade at $10.66, and were holding above 10 dollars per share on the Amex.
For MarketNewsVideo.com, I'm Nichole Dossous.