After Rise Gold Corp (OTCMKTS:RYES) made a major new announcement yesterday with regard to fresh financing, the market did not react kindly and the stock promptly suffered from a selloff to end the day with a decline of as much as 7%.
Rise Gold Announces US$1,600,000 Financing
The company announced yesterday that it was looking to raise fresh financing to the tune of as much as $1,600,000 by way of the issuance of 4,000,000 units. The units are going to be priced at $0.40 each and would be made up of one share of the Rise Gold common stock and half of a share purchase warrant.
A solitary warrant is going to entitle the holder to pick up one common share in Rise Gold at the exercise price of $0.60 up until two years from the date of issue. The whole thing is going to be conducted by way of a private placement.
On the other hand, Rise Gold also announced that the proceeds from the private placement are going to be deployed towards its Idaho-Maryland Mine project and also for general working capital purposes. Although the stock declined yesterday, it remains to be seen if it can bounce back today.